Archive · 26 Sep 2026
Central Waives Additional Levy on Excess Tobacco Production
The Central government has removed an extra charge on some tobacco produced in Andhra Pradesh.
This applies to tobacco made above the planned amount and tobacco grown by unregistered farmers.
The decision is expected to help about 44,000 farmers.
Together, the relief is worth about Rs 226 crore.
Farmers had been facing difficulties because of international conditions.
The state government also gave money for low-quality tobacco.
Farmers produced much more tobacco than the official target.
The Tobacco Board is working to sell the remaining tobacco quickly.
The Central government set the additional levy at zero for excess tobacco produced during the 2025–26 crop season.
The waiver also covers tobacco produced by unregistered farmers, according to Tobacco Board chairman Chidipothu Yashwanth Kumar.
About 44,000 tobacco farmers in Andhra Pradesh are expected to benefit from financial relief totaling Rs 226 crore.
Farmers produced around 236 million kg against the Tobacco Board’s target of 142 million kg for the 2025–26 season.
The Andhra Pradesh government separately provided Rs 10 per kg for low-grade and off-grade tobacco, offering Rs 94 crore in relief.
- Who
- About 44,000 tobacco farmers in Andhra Pradesh, along with the Central government and Tobacco Board, are involved.
- What
- The additional levy on excess tobacco and tobacco produced by unregistered farmers was set at zero.
- When
- For the 2025–26 crop season; the announcement was made on Friday.
- Where
- Andhra Pradesh, with the announcement made at the Tobacco Board office in Guntur.
- Why
- To provide financial relief to tobacco farmers facing difficulties linked to international conditions and excess production.
- Crop season
- 2025–26
- Production target
- 142 million kg
- Actual production
- Around 236 million kg
- Farmers benefiting
- About 44,000
- Central relief
- Rs 226 crore
- State assistance
- Rs 10 per kg for low-grade and off-grade tobacco
- State relief
- Rs 94 crore