Price crash: Tobacco Board to meet in Mysuru on Monday

Tobacco Board meets in Mysuru to address price crash concerns affecting farmers after GST hike to 40%.

The Tobacco Board is holding a meeting with the elected representatives of tobacco growing regions of Karnataka and the tobacco traders in Mysuru on Monday (March 2, 2026) to discuss the situation arising out of the recent crash in tobacco prices.

MPs representing Mysuru and Kodagu, Chamarajanagar, Hassan and Mandya Lok Sabha constituencies, besides MLAs representing Periyapatna, Hunsur, H. D. Kote, K. R. Nagar and Arkalgud have been invited for the meeting, which will also be attended by Tobacco Board Chairman Yashwanth Kumar Chidipothu, Board’s Executive Director B. Vishwasree and Board’s Director (Auctions) B. C. Srinivas.

All the major cigarette manufacturers and exporters, including ITC, are expected to attend the meeting held in the wake of the concern gripping the tobacco farmers of the region following a collapse in the prices of tobacco after the Centre recently hiked GST from 28% to 40%.

It may be mentioned here that the tobacco farmers resorted to an agitation after the prices of superior grade tobacco, which was fetching them around ₹ 320 per kg, crashed to ₹ 270-280 per kg in the weeks following the Union Budget.

The collapse in prices was attributed to decline in the procurement by the cigarette manufacturers, traders and exporters. 

The sharp fall in tobacco prices sparked protests by farmers in Hunsur and Periyapatna, two key tobacco growing regions in the state, leading to suspension in auctions in many platforms in the state last week.