In a significant demonstration of distress, members of the Federation of Karnataka Virginia Tobacco Growers' Association took to the streets in Periyapatna on Monday. Their protest was directed against the Union government's recent fiscal policies, which they claim are pushing tobacco cultivators to the brink.
What Sparked the Protest?
The farmers' primary grievance is the Central Excise (Amendment) Bill-2025 and the subsequent rules notified by the Union finance ministry. Specifically, they are opposing the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules-2026.
These rules have imposed a steep excise duty on tobacco products, which the farmers argue will cripple demand and directly impact their incomes. The new duty structure, effective from February 1, ranges from Rs 2,050 to Rs 8,500 per 1,000 sticks, with the rate varying based on the length of the cigarettes.
A Sector Already Under Severe Stress
Protesters highlighted that the tobacco farming community is already grappling with a multitude of challenges. They cited falling export realisations and stagnant domestic prices for their produce, which have squeezed their profit margins. Compounding this are the continuously rising costs of agricultural inputs like fertilizers and labor.
Furthermore, the cultivable area for tobacco has been shrinking due to regulatory caps imposed by the government. The association members stated that this abrupt and substantial tax hike is the final blow in a series of setbacks, causing deep anxiety among farmers and all stakeholders in the tobacco value chain.
Demands for a Sustainable Solution
The protesting association has put forth clear demands to the central government. They are urging authorities to roll back the excessive hike in taxes introduced by the new bill and rules. Their appeal is for the government to re-issue duty rates that are revenue-neutral.
They argue that such a balanced approach is crucial. It would serve the dual purpose of protecting the livelihoods of millions of farmers dependent on tobacco cultivation while also discouraging illegal activities like smuggling, which often flourish under the burden of excessive taxation.
The protest in Mysuru district underscores the growing discontent in the agricultural heartland over policies perceived as detrimental to farming interests, setting the stage for further dialogue between cultivators and policymakers.
