Lok Sabha Question No. 2575 (UNSTARRED), answered on 2025-08-05
Subject: Tobacco Processing and Value-Addition Infrastructure
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Dr. Byreddy Shabari, Shri Appalanaidu Kalisetti

## 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 5 TH  AUGUST, 2025

## TOBACCO PROCESSING AND VALUE-ADDITION INFRASTRUCTURE

2575.  DR. BYREDDY SHABARI: SHRI APPALANAIDU KALISETTI:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी 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 क ृ िष एवं िकसान कʞाण राǛ मंũी (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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