Additional levy on excess tobacco waived

Guntur: Tobacco Board chairman Chidipothu Yashwanth Kumar said that the Central government gave major relief to tobacco farmers in AP by waiving the additional levy on excess tobacco production and tobacco produced by unregistered farmers.

Addressing the media at the Tobacco Board office in Guntur on Friday, he said the Central government has decided to fix the additional levy at zero for excess tobacco produced during the 2025–26 crop season for tobacco produced by unregistered farmers.

He said the decision would benefit about 44,000 tobacco farmers in the state and provide financial relief of Rs 226 crore.

He recalled that tobacco farmers had faced severe problems over the past four months due to international conditions and added that the State government had extended financial assistance of Rs 10 per kg for low-grade and off-grade tobacco, extending relief of Rs 94 crore to the tobacco farmers.

He explained that for the 2025–26 season, the board had fixed the production target at 142 million kg, while farmers have produced around 236 million kg of tobacco. A substantial quantity of tobacco had already been sold through the auction process.

He said the Tobacco Board has taken steps to ensure that the remaining crop was sold at the earliest.

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