Archive · 22 Jul 2026
Andhra Pradesh Seeks GST Cut on Raw Tobacco
The state government of Andhra Pradesh has asked the Central Government to lower the tax on raw tobacco from 40% to 28%.
They believe this will help farmers, traders, and exporters.
The state government also wants more help from the Central Government for farmers and industries.
They talked about many things like better prices for crops, storage facilities, and using new technology in farming.
The Central Government said they will think about these requests.
Andhra Pradesh seeks a GST reduction on raw tobacco from 40% to 28% to benefit farmers, traders, and exporters.
The state government wants greater Central support for agriculture, farmer welfare, and industrial development.
Key issues discussed include remunerative prices for crops, procurement, marketing infrastructure, and value addition.
Challenges highlighted include rising cultivation costs, climate change, and natural calamities.
The Central Government has assured positive consideration of the state's proposals.
- Who
- Andhra Pradesh state government, led by agriculture minister Kinjarapu Atchannaidu.
- What
- A plea for GST reduction on raw tobacco and greater Central support for agriculture and industrial development.
- When
- During a series of meetings in New Delhi on Tuesday.
- Where
- New Delhi, India.
- Why
- To benefit farmers, traders, and exporters, and to enhance the global competitiveness of Indian tobacco exports.
State Government
Central Government
GST Reduction on Raw Tobacco
State Government
The state government seeks a reduction in GST on raw tobacco from 40% to 28% to benefit farmers, traders, and exporters.
Central Government
The Central Government has not yet responded to the proposal.
Support for Agriculture and Industrial Development
State Government
The state government seeks greater Central support for agriculture, farmer welfare, and industrial development.
Central Government
The Central Government has assured positive consideration of the state's proposals.
- Current GST on Raw Tobacco
- 40%
- Proposed GST on Raw Tobacco
- 28%
- Key Issues Discussed
- Remunerative prices for crops, procurement, marketing infrastructure, value addition, storage facilities, food processing, crop insurance, disaster relief, and measures to enhance farmers' incomes.
- Challenges Highlighted
- Rising cultivation costs, climate change, drought, cyclones, and excessive rainfall.
- Central Support Sought
- Support for warehouses, cold storage facilities, processing units, digital agriculture, drone technology, mechanisation, soil health management, and efficient water use.
