FAIFA seeks protection of FCV farmers

Hyderabad: Federation of All India Farmer Associations (FAIFA), a non-profit organization representing the cause of millions of farmers and farmworkers of commercial crops across the states of Andhra Pradesh, Telangana, Karnataka, Gujarat, etc. flagged that consumption price of legal cigarettes in India has reached the maximum limit and any further increase in taxes would lead to a severe reduction in FCV (flue cured virginia) tobacco cultivation.

It appealed to the policymakers to sustain market price of finished goods to protect livelihoods of FCV farmers as they cannot sell their produce locally and at the right price.

The FCV crop size has witnessed a sharp drop of 39 per cent from 316 million kg per annum to 194 million kg per annum between 2013-14 to 2021-22 due to high taxes on legal cigarettes and the market share of illicit cigarettes increased from 21.3 per cent in 2015 to 27.6 per cent in 2020. The FCV cultivation acreage in India has also witnessed a huge drop of nearly one lakh hectares between 2013-14 to 2020-21 leading to 35 million man-days of employment loss. Javare Gowda, President, FAIFA, said:

"The move to project in studies low penetration levels of illicit cigarettes below international markets is an obvious mis-projection. Such unreliable studies should be looked at with caution as they downplay the severity of the illegal cigarette trade in the country."