Mysore Tobacco Market in Turmoil as Prices Remain Depressed Despite Assurances
In Mysore district, tobacco growers are facing severe financial distress as market prices continue to languish at alarmingly low levels, despite repeated meetings and official assurances. On Tuesday, the average price for high-quality Flue-Cured Virginia (FCV) tobacco stood at just Rs 285.7 per kilogram, a significant drop from Rs 311.6 per kilogram recorded in December 2025.
Price Crash and Grower Concerns
The highest rate observed on Tuesday was Rs 303 per kg, which pales in comparison to Rs 320 per kg in December 2025 and a much higher Rs 375 per kg during the previous season. This persistent price depression has sparked outrage among the farming community, who allege that two primary factors are driving the crisis.
First, excessive tobacco production in neighboring Andhra Pradesh has flooded the market, creating a supply glut that undermines price stability. Second, recent changes in taxation on so-called "sin products" have further exacerbated the situation, reducing demand and compressing margins.
Official Response and Quota Adjustments
In response to the market instability, the Tobacco Board has implemented a strategic reduction in the tobacco crop-size quota for Karnataka. For the 2026–27 season, the state's allocation has been slashed from 100 million kilograms to 90 million kilograms, a move intended to balance supply and demand.
However, according to Vikram Gowda, a former member of the Tobacco Board, this quota cut may not address the core issue. "Karnataka has never actually reached its full quota of 100 million kg historically, so this reduction is not the primary concern," Gowda explained. "The real problem stems from Andhra Pradesh producing over 145 million kg of excess tobacco, which destabilizes the entire market and depresses prices across the region."
Economic Sustainability and Farmer Protests
Hosur Kumar, president of the Karnataka Rajya Raitha Sangha (KRRS) Mysuru district unit, highlighted the unsustainable economics facing growers. "The production cost for FCV tobacco has now crossed the Rs 200 per kg mark, even when accounting for free family labor," Kumar stated. "At current market rates, farmers are operating at razor-thin margins or outright losses, making it impossible to sustain their livelihoods."
Kumar further noted that despite repeated protests and appeals by growers, there has been no meaningful improvement in prices. "While Tuesday saw a slight uptick in rates, it remains negligible compared to last season's figures," he added, emphasizing the growing frustration within the agricultural community.
Broader Implications and Warnings
The situation has broader economic ramifications, as local economies in tobacco-growing regions are heavily dependent on crop prices. A farmers' leader issued a stark warning: "If growers do not receive fair and remunerative prices soon, it could trigger a major crisis, affecting not just individual farmers but entire communities."
Gowda provided context on Karnataka's typical production patterns, noting that the state usually yields between 80 to 90 million kg annually, with provisions to increase the quota by 10% of the target if needed. "The pressing question now is not about quotas, but when our farmers will finally see good prices that reflect their hard work and investment," he concluded, urging the Tobacco Board to demonstrate greater sensitivity to farmer demands and market realities.
