India’s FCV Tobacco Boosts Farmer Incomes, Exports More Than Double
06 August 2025, New Delhi: The cultivation of Flue-Cured Virginia (FCV) tobacco in India has significantly boosted farmer incomes in recent years. Growers are not only receiving higher prices for their produce but are also benefiting from a substantial rise in international demand, resulting in more than a two-fold increase in exports.
Prices Double, Export Value Surges Nearly Threefold
In 2020–21, the average price of FCV tobacco stood at ₹135.24 per kilogram. By 2023–24, it had more than doubled to ₹279.54 per kilogram, directly contributing to higher earnings for farmers.
On the export front, India shipped tobacco and tobacco products worth ₹6,496.99 crore in 2020–21. This figure rose to ₹16,728.02 crore in 2024–25, reflecting the commodity’s growing appeal in global markets. The data was provided by Minister of State for Agriculture and Farmers’ Welfare Ramnath Thakur in a written reply to the Lok Sabha.
Scientific Support Driving Quality and Yield
To support farmers in improving the quality and profitability of their crops, the ICAR–National Institute of Research on Commercial Agriculture (NIRCA), Rajahmundry, continues to develop improved FCV tobacco varieties and production techniques. These research-driven solutions are regularly disseminated to farmers, helping them adopt best practices and meet international quality standards.
Tobacco Board Regulates Crop Size and Auctions
The Tobacco Board, under the Ministry of Commerce and Industry, oversees the regulation of FCV tobacco production and marketing in India. Each year, the Board sets a “crop size” — a production cap aimed at ensuring price stability and balancing supply with demand.
Farmers’ produce is sold through a government-regulated e-auction system, which ensures transparent pricing and helps both sellers and buyers operate in a fair marketplace.
No Active Promotion of Tobacco Cultivation, Says Government
The Department of Agriculture and Farmers’ Welfare has clarified that the Government of India does not run any schemes or programmes to promote the cultivation of tobacco.
Instead, existing systems are designed to regulate and support farmers who are already engaged in FCV tobacco cultivation. These efforts aim to protect farmer incomes, manage supply, and ensure that quality standards are aligned with international expectations — without encouraging expansion of tobacco farming.
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