Mysuru Tobacco Growers in Crisis as Prices Crash Sharply
Tobacco cultivators across Karnataka, particularly in the historic Old Mysuru region renowned for its premium quality produce, are grappling with severe economic hardship following a dramatic and distressing decline in market prices. The average procurement rate for good quality tobacco has plummeted from the previous range of Rs 315 to Rs 320 per kilogram to a mere Rs 294 per kilogram, sending shockwaves through the agricultural community and raising urgent concerns about livelihood sustainability.
Steep Price Drop Compared to Previous Season
According to detailed reports from the growers themselves, the current pricing structure reveals a troubling scenario. Top-grade tobacco is now fetching only Rs 314 per kilo, while the average for good quality stands at Rs 294. In contrast, the lowest quality tobacco is being procured for as little as Rs 200, with an average of Rs 254 for inferior grades. However, the most alarming comparison emerges when examining year-on-year data. Growers have reported that prices have crashed by nearly Rs 100 per kilogram compared to the previous season, a devastating blow to their financial stability.
Ramegowda, the general secretary of the Karnataka Rajya Raitha Sangha, provided a personal testimony of this drastic decline. "In the previous season, I successfully sold high-quality FCV tobacco for Rs 380 per kilogram," he stated. "This year, the situation has deteriorated rapidly. Initially, we received Rs 310 per kg, but that has now fallen further to Rs 280, creating immense pressure on our farming operations."
High Quality, Low Returns: A Bitter Paradox
Adding to the frustration is the paradoxical reality that this year's tobacco harvest is reportedly of exceptional quality. Ramegowda, who has dedicated three decades to tobacco cultivation, emphasized, "This year's tobacco quality is arguably the best we have produced in the last five decades. Unfortunately, despite this superior output, prices are falling precipitously." He highlighted a stark regional disparity, noting, "Farmers in Andhra Pradesh have received up to Rs 450 per kilogram for their produce. Yet, Karnataka's farmers are bearing the brunt of low prices even though we are consistently producing high-quality tobacco."
Expert Analysis Points to GST and Market Forces
Vikram Gowda, a former member of the Tobacco Board, offered a professional analysis of the underlying causes for this rate fluctuation. He attributed the price drop primarily to the recent increase in Goods and Services Tax (GST) on tobacco products. "Major tobacco buyers are significantly reducing their procurement quantities due to fears of declining demand for tobacco products following the GST hike," Gowda explained. "This strategic reduction in purchasing has directly resulted in the observed price drop, creating a buyer's market that disadvantages growers."
Gowda further elaborated on the impact of production dynamics across states. "In Andhra Pradesh, over 100 metric tons of excess tobacco was produced against the state's allocated quota. This surplus production is adversely affecting market prices and, consequently, the growers in our state," he said. He clarified Karnataka's position, stating, "For Karnataka, the Tobacco Board has set a fixed quota of 100 metric tons. However, our actual production is consistently between 80 and 90 metric tons, indicating we are not contributing to oversupply but are still suffering from its effects."
The combination of tax policy changes, reduced buyer demand, and interstate production imbalances has created a perfect storm for Karnataka's tobacco growers, leaving them in a precarious financial position despite their commitment to quality cultivation.
