A seminar aimed at protecting farmers’ interests, organized by the Federation of All India Farmer Associations (FAIFA), a non-profit supporting millions of farmers and farm workers in states like Uttar Pradesh, Gujarat, Maharashtra, Andhra Pradesh, Telangana, and Karnataka, highlighted the critical need for a comprehensive regulation of all tobacco varieties. The seminar, themed ‘All India Consultation of Tobacco Farmer Leaders,’ took place at the Constitution Club of India in New Delhi and brought together farmer leaders from across the nation, scientists, policymakers, and industry experts. Participants discussed necessary reforms to safeguard the livelihoods of India’s 60 lakh tobacco-growing families, especially those involved in non-FCV tobacco varieties, which are not covered by the Tobacco Board’s regulatory framework.
During the seminar, concerns were raised about the influence of foreign companies, which are perceived to manipulate the market for their interests by promoting tobacco cultivation for nicotine extraction due to global demand and high prices. This has resulted in the overproduction of non-FCV tobacco varieties, leading to an estimated total loss of around ₹500 crores for the Indian farming community. Murali Babu, General Secretary of FAIFA, stated, “Vested interests, particularly multinational corporations, are reportedly exploiting tobacco farmers by initially offering attractive prices, only to create long-term dependence. Once farmers rely on them, they often face unfair practices and price manipulation, negatively impacting their livelihoods and causing instability in the sector.
Therefore, a unified strategy across states and among farmer leaders is urgently required. We need to align production with actual demand and take practical steps to limit overproduction. Only then can we secure sustainable incomes and protect the long-term interests of our farming communities.” Experts at the seminar pointed out that misleading commitments from multinational corporations have led to a significant mismatch between demand and supply, leaving non-Virginia tobacco farmers with unsold inventory and financial strain. Non-Virginia tobacco constitutes the majority of India’s tobacco production, primarily sold directly by farmers to manufacturers without regulatory oversight. India produces over 600 million kilograms of non-Virginia tobacco each year, mainly for products like bidis, chewing tobacco, and gutka.
Unlike FCV tobacco, these varieties lack any sales capping or formal mechanisms, resulting in an unregulated market that exposes farmers to price volatility and exploitation. “We are not asking for subsidies; we are asking for systems. Every tobacco farmer, whether FCV or non-FCV, deserves a transparent market and stable income. We urge the Government of India to develop a National Tobacco Crop Regulatory Framework that encompasses all tobacco varieties under a single umbrella for planning, production, and pricing—ensuring one policy, one platform, one protection,” Murali Babu added.
Another significant issue raised during the seminar was the increasing trend of multinational tobacco companies shifting towards novel products like e-cigarettes and nicotine pouches, which is gradually reducing the demand for traditional leaf tobacco, a crucial aspect of India’s tobacco farming economy. While these companies continue to benefit from newer products, farmers remain uncertain about future demand for their crops. Any decline in legal cigarette production or the introduction of products that bypass traditional tobacco poses a direct threat to millions of rural jobs and farmers’ livelihoods. As these new devices depend less on leaf tobacco and often use smaller amounts of processed tobacco or synthetic nicotine, the demand for raw leaf is diminishing.
Consequently, seminar participants emphasized that regulating non-FCV tobaccos similarly to FCV tobaccos, by incorporating them into an appropriate platform or government body like the Tobacco Board, would help eliminate market imbalances, promote trade transparency, and ensure better price realization for farmers. Ch. Yashwant Kumar, Chairman of the Tobacco Board, announced during the seminar a pilot plan for Non-FCV Regulation and proposed a policy roadmap to create a legal and institutional framework for regulating non-FCV tobaccos. Kumar remarked, “Our FCV auction model is a global benchmark in transparency. The time has come to design a non-FCV regulation model that guarantees fair prices, planned production, and farmer dignity.
It must be noted that the recent overproduction of HDBRG, Rustica, and Lal Chopadia non-FCV tobacco varieties has led to a total loss of around ₹500 crores for the farming community in 2025. A mechanism to monitor supply and demand could have prevented such overproduction and its associated losses.” The seminar featured several distinguished experts and key stakeholders, including Mr. Ch. Yashwant Kumar, Chairman of the Tobacco Board, Dr. U. Sreedhar (Senior Scientist, CTRI), and Mr. Vipinchandra R. Patel, President of the Consortium of Indian Farmers Associations (CIFA), alongside farmer leaders from Karnataka, Mr. Shankar Narayan Reddy and Mr. Vikramraj Urs.