**Executive Summary:**
This document is the response to Lok Sabha Unstarred Question No. 2575 regarding tobacco processing and value addition infrastructure, answered on August 5, 2025. It clarifies the roles of the Department of Agriculture & Farmers Welfare and the Tobacco Board concerning tobacco farmers and production. It highlights measures taken to ensure fair prices and protect farmers from global price volatility, resulting in increased farmer income and export revenue.
**Key Points / Main Content:**
* **Department of Agriculture & Farmers Welfare:**
* Does not implement any schemes for tobacco/tobacco cultivation promotion.
* **Tobacco Board (Ministry of Commerce and Industry):**
* Mandated to regulate production and marketing of Flue Cured Virginia (FCV) tobacco.
* Plans FCV tobacco crop size a season ahead and regulates its production.
* Conducts e-auctions to ensure fair prices for farmers and supply for traders.
* Does not directly deal with farm-to-factory linkages.
* Improves marketability to meet international customer requirements.
* Takes measures to protect farmers from global price volatility to ensure price stability.
* **Increased Farmer Income & Export Revenue:**
* FCV tobacco farmers' income has increased since 2020-21.
* Export revenue has more than doubled during this period.
* Farmer prices averaged Rs. 135.24 per kg in 2020-21, increasing to Rs. 279.54 per kg in 2023-24.
* Export value increased from Rs. 6,496.99 Crore in 2020-21 to Rs. 16,728.02 Crore in 2024-25.
* **ICAR-NIRCA (Rajahmundry):**
* Conducts research on varietal development, production protection technologies, and leaf quality.
* Disseminates technologies and good agricultural practices to farmers.
**Impact Analysis:**
**Tobacco Farmers:**
* *Impact:* Benefits from measures taken by the Tobacco Board to ensure fair prices through e-auctions and improved marketability, leading to increased income and protection from price volatility. Receives support from ICAR-NIRCA through technology dissemination and agricultural practices.
* *Action Required:* Adopt good agricultural practices and technologies disseminated by ICAR-NIRCA.
**Tobacco Traders:**
* *Impact:* Assured supply of tobacco through the Tobacco Board's regulated production and e-auction system.
* *Action Required:* Participate in e-auctions conducted by the Tobacco Board.
**Tobacco Board:**
* *Impact:* Responsible for regulating FCV tobacco production and marketing, conducting e-auctions, and ensuring fair prices for farmers.
* *Action Required:* Continue to regulate production, conduct e-auctions, improve marketability, and protect farmers from price volatility.
**ICAR-NIRCA:**
* *Impact:* Plays a crucial role in research and development related to tobacco production, contributing to improved quality and productivity.
* *Action Required:* Continue research on varietal development, production technologies, and disseminate findings to farmers.
Key Entities Referenced
Ministry of Agriculture and Farmers Welfare: The ministry responsible for agriculture and farmers welfare mentioned in the policy document.
Andhra Pradesh: A state in India, specifically mentioned in the context of tobacco production.
Tobacco Board: An organization under the Ministry of Commerce and Industry, mandated to regulate the production and marketing of Flue Cured Virginia (FCV) tobacco.
Flue Cured Virginia (FCV) tobacco: A specific type of tobacco regulated by the Tobacco Board.
SHRI RAMNATH THAKUR: The Minister of State for Agriculture and Farmers Welfare who provided the answer to the Lok Sabha question.
ICAR-National Institute for Research on Commercial Agriculture (NIRCA), Rajahmundry: An agricultural research institute involved in research on tobacco varieties and technologies.
Department of Agriculture and Farmers Welfare: A department that is not implementing any programme/scheme for promotion of tobacco/tobacco cultivation in the country.
Lok Sabha: The lower house of the Parliament of India, where the question regarding tobacco processing was raised.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 2575
TO BE ANSWERED ON THE 5TH AUGUST, 2025
TOBACCO PROCESSING AND VALUE-ADDITION INFRASTRUCTURE
2575. DR. BYREDDY SHABARI:
SHRI APPALANAIDU KALISETTI:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी be
pleased to state:
(a) the details of farm-to-factory linkages created to ensure higher returns for tobacco farmers
by promoting value-added tobacco production, year-wise and State-wise, particularly for
Andhra Pradesh;
(b) the quantum of investment facilitated by the Government over the past five years for
establishing domestic tobacco processing and value-addition infrastructure, State-wise;
(c) the specific measures undertaken by the Government to protect tobacco farmers from global
price volatility and ensure price stability; and
(d) whether the Government has any plans to further strengthen and expand such domestic
farm-to-processing linkages to enhance farmer incomes sustainably, and if so, the details
thereof?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) to (d): The Department of Agriculture & Farmers Welfare is not implementing any
programme / scheme for promotion of tobacco/tobacco cultivation in the country.
The Tobacco Board under the Ministry of Commerce and Industry is mandated to regulate
production and marketing of Flue cured Virginia (FCV) tobacco. The Board as per its mandate
plans the FCV tobacco crop size, a season ahead and regulates its production. Subsequently,
Tobacco Board conducts e-auctions for ensuring fair and remunerative prices to farmers and
assured supply of tobacco to traders.
The Tobacco Board does not directly deal with farm-to-factory linkages to ensure higher
returns for tobacco farmers by promoting value-added tobacco production. However, the Board
has taken measures to improve its marketability in line with the international customer
requirements thereby ensuring the realization of the better prices for the FCV tobacco produced
by the farmers. Further, the Board has also taken necessary measures to protect the farmers
from global price volatility to ensure the price stability. Due to focused efforts, the FCV tobacco
farmers were able to increase their income since 2020-21 and the export revenue also more
than doubled during this period. The farmer prices (average) for their FCV tobacco produce
increased from Rs. 135.24 per kg in 2020-21 to Rs. 279.54 per kg in 2023-24. The value of
export of tobacco and tobacco products also increased from Rs. 6,496.99 Crore in 2020-21 to
Rs. 16,728.02 Crore in 2024-25.
Further, ICAR-National Institute for Research on Commercial Agriculture (NIRCA),
Rajahmundry is involved in research through varietal development, production & protection
technologies and leaf quality in different types of tobaccos grown in different climatic zones of
India. ICAR-NIRCA is actively disseminating technologies and good agricultural practices to
farmers.
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