Karnataka Tobacco Farmers Face Market Squeeze as Congress Demands ₹300 Base Rate

Karnataka Pradesh Congress Committee (KPCC) spokesperson M. Lakshmana has demanded a mandatory floor price of ₹300 per kilogram for Flue-Cured Virginia (FCV) tobacco, raising concerns over declining bid rates that threaten regional growers.

Speaking during an inspection of the tobacco auction platform in Kaggundi village within Periyapatna taluk, Lakshmana met with cultivators and officials representing the central Tobacco Board. Commercial bidding for the current harvesting season officially opened on October 23, but farmers report that early purchase prices fall short of input and curing costs.

The Mysuru belt is known for cultivating superior-grade FCV tobacco, a variety primarily targeted for overseas export. As documented by The Hindu's regional coverage, Lakshmana alleged that major commercial buyers have formed an informal cartel to suppress bidding values below sustainable margins, operating with little pushback from central market overseers.

India News Field Visual

The Tobacco Board functions directly under the Union Ministry of Commerce and Industry, placing statutory oversight of auction platforms, grading, and minimum support mechanisms under federal jurisdiction. Lakshmana stated that during the 2025–26 cycle, despite widespread demonstrations by growers, cultivators faced severe economic exploitation on trading floors.

Because the regulatory apparatus is governed by central legislation, state administrators have limited direct power to set bidding limits. However, Lakshmana noted that previous efforts led to formal representations being submitted to Union Commerce Minister Piyush Goyal, alongside interventions organized by Periyapatna MLA K. Venkatesh and former Hunsur MLA H.P. Manjunath. Local district collectors previously summoned buyer syndicates to issue warnings against anti-competitive practices.

To counter current market rates, the KPCC leadership plans to push for state-level administrative pressure on private purchasers. Lakshmana announced plans to seek an urgent consultation with state leaders, Tobacco Board administrators, and commercial company executives, while also petitioning Mysuru district in-charge Minister Yathindra Siddaramaiah to curb unfair trading practices at local platforms.

Grower associations in Periyapatna and Hunsur have voiced support for a state-facilitated roundtable, arguing that without a guaranteed floor price, smallholders cannot recover escalating fuel and curing barn expenditures before the current marketing cycle concludes.