Rollback of new excise duty rates on cigarettes sought

Flue-Cured Virginia (FCV) tobacco farmers of Andhra Pradesh and Telangana submitted a representation to A.P. Energy Minister Gottipati Ravi Kumar in Ongole on Wednesday. They sought the support of the State government to recommend the roll back of the recently notified excise duty rates on cigarettes to Prime Minister, Union Finance Minister and Commerce Minister.

While giving the representation, Federation of All India Farmer Associations (FAIFA) president P.S. Murali Babu urged the Minister for his immediate intervention against the steep excise duty increase on cigarettes. He said that the scale and abruptness of this hike will severely undermine farmer livelihoods, destabilise the legal tobacco value chain, and erode government revenues.

Mr. Murali further said, “The recently notified tax increase — more than 60% in effective terms — is unprecedented and punitive. Its consequences are immediate and severe. The proposed excise duty hike will make Indian cigarettes unaffordable and hand over the market to smuggling networks, leaving FCV tobacco farmers without buyers.”

“Currently, the average price of a cigarette pack in India is around Rs. 200; post-hike, it is expected to rise to Rs. 300–350. In contrast, packs in neighbouring countries such as Pakistan, Bangladesh and Myanmar sell for Rs. 75–80, creating a strong incentive for illicit inflows. Already, 26% of India’s cigarette market is illegal, routed through Myanmar and China,” he informed.

As the FCV tobacco farmers and farm workers will suffer irreversible economic distress with the growth of illicit trade, the FAIFA members requested the state government to intervene into this issue. After discussion with the farmers, the minister assured that he would convey this matter to the Chief Minister to take appropriate steps to protect the interests of the FCV tobacco farmers.