Tobacco Asia

48 tobaccoasia LEAF NEWS 烟叶新闻 Production Falls in Brazil The Brazilian Tobacco Growers' Association (Afubra) released its production estimate for the 2025/2026 tobacco crop, pointing to a year‑on‑year decline after a record harvest, largely due to humid conditions and cooler nighttime temperatures that have slowed plant development in several regions. Virginia tobacco, which represents 90.47% of production in southern Brazil, is projected at 619,969 metric tons, down 4.35% from the previous crop. Afubra estimates output at 248,103 tons in Rio Grande do Sul, a 7.67% decline, 202,002 tons in Santa Catarina, down 2.50%, and 169,864 tons in Paraná, reflecting a 1.40% decrease. Burley production is also expected to fall. Initial esti‑ mates put total burley output in southern Brazil at 54,979 tons, a drop of 7.80% compared with last season. Rio Grande do Sul may produce 30,919 tons, down 7.75%, while Santa Catarina is forecast at 15,741 tons, an 8.55% decline. Paraná's burley crop is estimated at 8,320 tons, down 6.52%. Common tobacco shows the steepest reduction among the main varieties. Afubra estimates production at 10,326 tons, a decrease of 14.47%. Output in Rio Grande do Sul may reach 820 tons, down 28.66%, while Santa Catarina could produce 1,089 tons, a drop of 40.64%. Paraná is expected to account for 8,417 tons, down 7.39%. Together, projected production of virginia, burley, and common tobacco in southern Brazil totals 685,274 tons for the season. The outlook contrasts with the previous harvest, which ended at a record 719,891 tons and raised expectations for continued growth. Instead, Afubra said the planted area across the three southern states edged down by 0.34% this season to 308,943 hectares. The association also expects average productivity to decline by about 4.8%, reinforcing forecasts of a smaller overall crop. Andhra Pradesh Bans Black Burley Tobacco The Andhra Pradesh government has imposed a complete ban on the cultivation of black burley tobacco and instructed district administrations in major tobacco‑growing regions to enforce the decision strictly. Special chief secretary for agriculture Budithi Rajashekar directed district collectors to immediately prevent any instance of black burley tobacco cultivation. He also mandated that farmers growing white burley tobacco must sign 100% buyback agreements with tobacco purchasing companies. The govern‑ ment clarified that it will no longer intervene in or assume responsibility for the procurement of white burley tobacco. District collectors received instructions to strengthen and activate task force teams to maintain close surveillance over tobacco nurseries. Authorities will take firm action against the raising of black burley seedlings and the use of black burley tobacco seeds. Officials must also raise awareness among farmers about the requirement for buyback agreements before starting white burley tobacco cultivation. According to Rajashekar, the state government last year procured 19.79 million kilograms of black burley tobacco from 11,990 farmers, releasing INR1.46 billion (US$17.6 million) through Markfed. He said farmers had assured the government at that time that they would not cultivate black burley tobacco again and had requested fair prices for unsold stocks that accumulated due to limited market demand. Despite fiscal constraints, he noted that the chief minister personally intervened to support the farmers. India Farmers Rally Against Tax Hike Thousands of tobacco farmers marched in parts of Andhra Pradesh and neighboring Karnataka to protest a sharp increase in tobacco taxes and demand a rollback, citing concerns over farmer livelihoods and the wider tobacco economy. Farmers staged road blockades, sit‑ins, and rallies in several districts, including Guntur, Bapatla, Palnadu and Prakasam, to voice their opposition to the new excise duty framework introduced by the central government. Protesters said the steep tax rise will force manufacturers to raise prices, reduce sales, and ultimately hurt the entire tobacco supply chain. The Federation of All India Farmer Associations (FAIFA) criticized the tax hike, saying it unfairly burdens farmers who grow regulated flue‑cured virginia (FCV) tobacco in Andhra Pradesh and Karnataka. "FCV tobacco farmers are already suffering under the burden of extremely high taxation rates on cigarettes, which were on a per kg basis more than 50 times higher than for bidis and more than 30 times higher than for chewing tobacco," FAIFA president Murali Babu said. He added that finished products containing FCV tobacco face tax of more than INR6 per dose, while other tobacco forms are taxed at less than 1 paisa (INR0.01) per dose. Farmers said they entered the current season expecting tax neutrality after the government's September 2025 rational‑ ization of the goods and services tax (GST) system, which introduced a 40% GST rate for tobacco products and elimi‑ nated the 12% slab for several categories. Many growers understood at the time that overall tax incidence on tobacco would remain broadly the same. The latest excise hike, however, came as a surprise. FAIFA voiced concern that the steep levy will make legal cigarettes unaffordable for many consumers, pushing them toward cheaper, untaxed alternatives and expanding the illicit market. Citing industry data, the group said India has become one of the world's largest illegal cigarette markets, with smuggled and untaxed products accounting for roughly 26% of total consumption. "This sharp increase will render legal products unafford‑ able to a huge section of consumers, accelerating consumer migration to illegal channels and overwhelming enforcement efforts," FAIFA said, urging the government to reconsider the excise rates and restore a revenue‑neutral structure that protects farmer incomes and supports rural employment. Protesters also called for targeted measures to curb smuggling and stronger support for domestic agriculture, as well Brazil's tobacco crop for 2025/2026 is estimated at 685,274 tons, a contrast to last season's record 719,891 tons. Credit: Pxhere.

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