Archive · 22 Jan 2026
Tobacco Farmers Seek Tax Hike Review
Some farmers who grow a special kind of tobacco called FCV met with the finance minister of India.
They were worried because the government recently increased taxes on tobacco.
The farmers think this will make their lives harder and might hurt the system that helps them sell their tobacco.
The finance minister listened to their concerns and said the government will look into it.
She promised that they won't try to make more money from tobacco taxes and will think about how it affects the farmers and the system.
The farmers also warned that higher taxes might lead to more illegal tobacco sales, like what happened in South Africa.
FCV tobacco farmers from Andhra Pradesh, Telangana, and Karnataka met with Union Finance Minister Nirmala Sitharaman.
They sought a review of the recent tobacco tax hike, expressing concerns about its impact on farmers' livelihoods and the regulated FCV tobacco ecosystem.
The delegation was led by Daggubati Purandeswari, MP from Rajahmundry, and included Yashwanth Kumar Chidipothu, Chairman of the Tobacco Board.
Sitharaman assured the delegation that the government will review the concerns and consider the impact on farmers and the regulated ecosystem.
The government stated its approach will be revenue-neutral, not aiming to generate additional revenue from the tobacco sector.
- Who
- FCV tobacco farmers from Andhra Pradesh, Telangana, and Karnataka
- What
- Met Union Finance Minister Nirmala Sitharaman to seek review of tobacco tax hike
- When
- Thursday, January 22, 2026
- Where
- India
- Why
- To express concern over the adverse impact of the tax hike on farmers' livelihoods and the regulated FCV tobacco ecosystem
- Location
- Andhra Pradesh, Telangana, Karnataka
- Leader
- Daggubati Purandeswari
- Meeting With
- Nirmala Sitharaman
- Concern
- Tax hike impact on farmers
- Government Stance
- Revenue-neutral approach
- Tax Increase Date
- February 1
- Tax Increase Percentage
- 73%
- Potential Revenue Loss Example
- South Africa (75% illicit trade)
Sources
FCV tobacco farmers’ delegation meets Sitharaman seeking review of tax hike
FCV Tobacco Farmer Delegation Led by Smt. D. Purandeswari, MP Meets Finance Minister Seeking Review of Tobacco Tax Hike
FM meets delegation of farmers led by D Purandeswari
