- Vested interests and MNCs promoting tobacco farming in India by falsely showing global demand and offering high prices
- Farmers face threats to income and livelihood due to excess supply and backing out by MNCs
- Indian farmers faced ₹500 crore loss in 2025 due to the overproduction of non-FCV tobacco varieties.
Bengaluru : A seminar dedicated to safeguarding farmers’ interests, organised by the Federation of All India Farmer Associations (FAIFA), a non-profit uplifting the cause of millions of farmers and farm workers involved in commercial crop cultivation in states such as Uttar Pradesh, Karnataka, Gujarat, Maharashtra, Andhra Pradesh and Telangana, emphasised the urgent need for a comprehensive regulation of all varieties of tobacco.
The seminar with the theme ‘All India Consultation of Tobacco Farmer Leaders’, held at the Constitution Club of India, New Delhi, brought together farmer leaders from across India, scientists, policymakers, and industry experts. The consultation deliberated on urgent reforms required to protect the livelihood of India’s 60 lakh tobacco-growing families, particularly those engaged in non-FCV tobacco varieties, who remain outside the regulatory structure of the Tobacco Board.
During the seminar, farmers and participants raised alarms over the influence of foreign companies, as they are allegedly seen as manoeuvring the market to serve their own vested interests by promoting tobacco cultivation for nicotine extraction, citing global demand and high prices. This has led to overproduction of non-FCV tobacco varieties, resulting in a total loss of around ₹500 crores for the Indian farming community.
Mr. Murali Babu, General Secretary, Federation of All India Farmer Associations (FAIFA), said, “Vested interests, particularly multinational corporations, are allegedly exploiting tobacco farmers by offering attractive prices initially, only to trap them into long-term dependence. Once farmers become reliant, they’re often left vulnerable to unfair practices and price manipulation. This is hurting farmer livelihoods and creating instability in the sector. To address this, we urgently need a unified strategy across states and among farmer leaders. We must reinforce the importance of aligning production with actual demand and take concrete steps to curb overproduction. Only then can we ensure sustainable incomes and protect the long-term interests of our farming communities.”
Experts at the seminar highlighted that misleading promises by multinational corporations have led to a serious misalignment between demand and supply, leaving non-Virginia tobacco farmers burdened with unsold stock and financial distress. Non-Virginia tobacco, which accounts for the bulk of India’s tobacco production, is largely sold directly by farmers to manufacturers without any regulatory oversight. India produces more than 600 million kilograms of non-Virginia tobacco annually, which is primarily used in products like bidis, chewing tobacco, and gutka. Unlike FCV tobacco, these varieties are not subject to any capping or formal sales mechanism, leaving the trade unregulated and farmers vulnerable to price exploitation and market volatility.
“We are not seeking subsidies; we are seeking systems. Every tobacco farmer, whether FCV or non-FCV, deserves a transparent market and a stable income. So we request the Government of India to evolve a National Tobacco Crop Regulatory Framework that brings all tobacco varieties under a single umbrella for planning, production, and pricing—ensuring one policy, one platform, one protection.” – Mr. Murali Babu added.