New Tobacco Excise Duty Hurts Indian Farmers
FAIFA warns the Indian government that the new tobacco excise duty effective Feb 2026 will hurt farmers and increase cigarette smuggling. Get latest tobacco tax news.
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LUCKNOW-The Federation of All India Farmer Associations (FAIFA) has raised a red flag over the government's latest excise duty hike on tobacco products. Effective February 1, 2026, the new rules impose duties up to ₹8,500 per 1,000 sticks, threatening livelihoods.
According to FAIFA, this steep tax increase contradicts prior revenue-neutral promises and will likely trigger a surge in illicit cigarette smuggling. Farmers across Andhra Pradesh and Karnataka fear a market glut and falling demand for domestically grown FCV tobacco crops.
