Chandrababu Naidu seeks tax relief for FCV tobacco farmers; writes to Sitharaman, Goyal
Chief Minister N. Chandrababu Naidu has reached out to Union Ministers regarding the challenges faced by FCV tobacco farmers in Andhra Pradesh due to a revised taxation policy. The increase in GST and excise duties has negatively impacted the market for tobacco, leading to reduced prices and procurement volumes. Naidu has also highlighted the crisis in the aquaculture sector caused by U.S. tariffs on shrimp, urging for support measures to protect farmers' livelihoods.
- ▪Naidu wrote to Union Ministers about the hardships faced by FCV tobacco farmers due to increased taxation.
- ▪The opening auction price of tobacco has dropped from ₹280 per kg last year to ₹250 per kg this season.
- ▪Exports of tobacco products saw a 34.81% decline from April 2025 to April 2026.
- ▪The aquaculture sector is facing a crisis due to a steep U.S. tariff on shrimp imports, affecting exports worth nearly ₹25,000 crore.
- ▪Naidu has requested various support measures for both tobacco and aquaculture farmers to stabilize their livelihoods.
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Chief Minister N. Chandrababu Naidu has written separate letters to Union Finance Minister Nirmala Sitharaman and Union Commerce and Industry Minister Piyush Goyal on the hardships being faced by Flue-Cured Virginia (FCV) tobacco farmers in Andhra Pradesh because of the revised taxation policy on cigarettes.The Chief Minister said the revised tax regime, effective from February 1, 2026, had adversely affected tobacco farmers in the State. He said the increase in GST on cigarettes from 28% to 40%, and a steep hike in excise duty ranging from ₹2,050 to ₹8,500 per 1,000 cigarettes depending on category and length, was affecting the interests of tobacco growers. Zero excise duty on unbranded raw Tobacco welcomed by Andhra PradeshMr.
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