Tobacco farmers protest sharp fall in prices, auctions suspended in few places in Karnataka

A steep decline in tobacco prices has triggered protests by farmers, forcing the Tobacco Board to suspend auctions at several platforms across Mysuru district in Karnataka.

Tensions escalated on February 18 when farmers boycotted auctions at Hunsur and blocked the Hunsur–K.R. Nagar highway, protesting the sudden price crash. On February 19, Animal Husbandry and Sericulture Minister K. Venkatesh, who represents Periyapatna, was reportedly gheraoed by agitating farmers at the Kaggundi auction platform in Periyapatna.

Tobacco Board officials confirmed that auctions have been suspended at the Hunsur and Periyapatna platforms in view of the unrest.

Farmers said the price of the bright grade variety of tobacco, which had been fetching around ₹320 per kg, has fallen in recent days to about ₹280 per kg, fuelling anger and uncertainty. Growers also expressed concern over weak demand from traders, which they said has compounded their losses.

On February 18, the protests turned volatile in Hunsur, where a field officer was allegedly manhandled. Stones were also reportedly pelted at the auction premises, damaging glass panes. Further, farmers demanded action against a Board official for allegedly addressing them in a callous manner.

While auctions have been halted at several centres, Board officials said trading continued on February 19 at platforms in H.D. Kote, Ramanathapura and Chilkunda.

The price slump has been attributed to a sharp reduction in procurement by a major tobacco company following an increase in GST on tobacco products to 40% with effect from February 1, 2026. Anticipating a dip in sales after the tax hike, cigarette manufacturers are believed to have curtailed purchases, leading to price volatility.

Federation of Virginia Flue Cured (VFC) Tobacco Growers’ Associations of Karnataka General Secretary Vikram Raj Urs urged the Centre to direct the Tobacco Board to convene a meeting of traders to address the crisis.

Of the estimated 85 million kg tobacco crop in Karnataka, around 49 million kg has already been sold through auctions. The remaining 36 million kg is yet to be marketed, and the price crash has heightened anxiety among farmers.

On February 18, JD(S) leader Nikhil Kumaraswamy and Hunsur MLA G.D. Harish Gowda met protesting farmers. Mr. Nikhil said he had spoken to his father, Union Minister for Heavy Industries and Steel H.D. Kumaraswamy, who would take up the matter with Union Commerce and Industry Minister Piyush Goyal to seek an early resolution.