Overview
- Union Minister H.D. Kumaraswamy sought a detailed Tobacco Board report by March 4 and asked traders to submit formal representations he can take to the Centre.
- Kumaraswamy pressed purchasing companies to raise procurement prices for growers, with calls to match Andhra Pradesh auction rates.
- The Tobacco Board reduced Karnataka’s notified crop size to 90 million kg for 2026–27 to help market the current harvest at remunerative levels, with 2025–26 output estimated at about 87.97 million kg.
- Board officials said there is no bar on foreign buyers and indicated steps to involve them in future auctions to increase competition.
- Prices for bright grades fell from roughly ₹320 to about ₹270–₹280 after major buyers scaled back purchases, citing higher excise and GST that dampened cigarette demand and deepened farmer distress.