Farmers cultivating Flue Cured Virginia (FCV) tobacco in Andhra Pradesh are experiencing a period of immense joy and prosperity. Recent auctions have seen prices skyrocket to historic highs, thanks to an incredibly strong demand for Indian FCV tobacco on the global market.
This season, the highest bid recorded has hit an impressive ₹430 per kilogram, surpassing last year’s top price of ₹411. Industry experts are optimistic, anticipating even higher bids as top-quality, premium-grade leaves become available on the auction platforms in the upcoming weeks.
Yashwanth Kumar Chidipothu, the respected Chairperson of the Tobacco Board of India, highlighted this extraordinary transformation as a pivotal moment for the industry. Speaking to The Hindu, he noted, “Over the past five years, the average income for farmers has more than doubled, a direct result of robust international demand and a meticulously managed marketing framework.”
To put this growth into perspective, the average auction price stood at ₹124 per kilogram in the 2019–20 season. By 2023–24, this figure had dramatically increased to almost ₹280. Last season alone, farmers in Andhra Pradesh collectively earned over ₹6,200 crore, showcasing unparalleled profitability right at the grassroots level. This season continues the trend, with current auction averages exceeding ₹260 per kilogram, comfortably above the established floor price, guaranteeing excellent returns for growers.
The success story extends beyond local auctions into the export market, which has seen equally spectacular growth. Export volumes surged from 219 million kilograms in 2019–20 to over 315 million kilograms in 2023–24, further climbing to an impressive 365 million kilograms in 2024–25. Even more astonishing is the growth in export earnings, which skyrocketed by 160% over five years, from ₹6,408 crore to a staggering ₹16,728 crore.
As a result, India has firmly established itself as a leading global exporter of unmanufactured tobacco, a formidable competitor against established players like Brazil and various African nations.
Mr. Yashwanth emphasized that buyers across 128 countries highly value Indian FCV tobacco for its superior quality, stringent residue control, and the transparency of its auction system. With soaring exports and record-breaking farm-gate prices, FCV tobacco stands as a testament to India’s robust export capabilities, bringing significant prosperity to its farmers and positively impacting the national trade balance.