Tobacco procurement: Piyush Goyal promises steps to ease crisis facing farmers

Union Commerce Minister Piyush Goyal has promised steps to ease the crisis facing tobacco farmers, who are reeling from a sharp fall in prices, and directed senior officials of his Ministry to hold discussions with tobacco-buying companies and take necessary measures to support the growers.

The assurance came during a meeting held at the office of Union Minister for Heavy Industries and Steel H.D. Kumaraswamy in New Delhi on Friday (March 13). The meeting was attended by former Prime Minister H.D. Deve Gowda, Yaduveer Krishnadatta Chamaraja Wadiyar, Mysuru MP, and a delegation of JD(S) leaders from Mysuru, Hassan and Chamarajanagar districts.

According to information shared by Mr. Kumaraswamy’s office, the problems faced by tobacco growers were explained in detail to Mr. Goyal, who responded positively to the farmers’ demands.

He promised that steps would be taken to resume tobacco procurement from Monday (March 16), with officials of his Ministry engaging with representatives of leading tobacco companies. He also indicated that measures would be initiated to encourage companies from foreign countries to participate directly in the bidding process.

Tobacco procurement had been suspended at several auction platforms in Karnataka after prices dropped sharply from ₹320 per kg to about ₹250 per kg in recent days.

Alleging that tobacco purchasing companies had scaled down procurement, triggering the price crash, farmers had demanded not only a price increase but also that the government invite foreign buyers to the auction platforms to boost competition.

Former Minister S.R. Mahesh, who was also part of the delegation that met Mr. Goyal, told reporters later that the Union Commerce Minister had assured that letters would be sent to ambassadors of 190 countries, inviting their companies to purchase tobacco directly. He also assured that steps would be taken to expand exports to countries where Indian tobacco has not been exported earlier.

Mr. Mahesh added that an appeal would also be made to the State government to provide a support price for tobacco.

He said the JD(S) delegation urged Mr. Goyal to ensure a robust market mechanism to stabilise prices and provide relief to farmers. The delegation also highlighted the need for better infrastructure at tobacco auction platforms.

A. Manju, Arakalgud MLA, who was present at the meeting, said the Tobacco Board had permitted cultivation of 100 million kg of tobacco in Karnataka, but only around 80 million kg had been produced this year.

However, companies that had earlier promised procurement were not purchasing even the reduced quantity, he said, urging the Centre to ensure immediate procurement of the tobacco already grown.

Mallesh Babu, Kolar MP, G.D. Harish Gowda, Hunsur MLA, C.N. Manje Gowda, MLC, and former MLAs K. Mahadev and Ashwin Kumar were also present at the meeting.