The Government of India has decided to extend the validity of the Certificate of Registration for Virginia tobacco growers and the License for operation of a barn from the current one year to three years to ease the burden on tobacco farmers and promote ease of doing business. A press release on this decision was issued on April 22, 2025.
This decision will eliminate the need for mandatory yearly renewals, providing substantial relief to the farming community.
The amendment, effective from the 2025-26 crop season in Andhra Pradesh, involves changes to the Tobacco Board Rules, 1976. The Ministry of Commerce and Industry, Department of Commerce, Government of India, published these amendments in the Gazette of India.
This extension of the registration and license validity period is expected to greatly benefit approximately 83,500 farmers managing around 91,000 barns across the states of Andhra Pradesh, Karnataka, Telangana, and Odisha. Farmers will now only need to renew their registrations and licenses once every three years, significantly reducing their administrative workload and associated costs.
Virginia tobacco cultivation in India is regulated under the Tobacco Board Act, 1975, and the rules framed thereunder. As per these regulations, every farmer intending to cultivate Virginia tobacco must obtain a certificate of registration as a grower and a separate license for each barn they operate. The Tobacco Board has been facilitating this registration and licensing process on an annual basis.
India holds a prominent position in the global tobacco market, being the second-largest producer and the fourth-largest exporter of unmanufactured tobacco worldwide in value terms during 2023. The sector also contributes significantly to the Indian exchequer. During the 2024-25 financial year, tobacco exports generated a substantial 1979 US million dollars (approximately Rs. 16,728 Crores).
This move by the government to extend the validity of grower registrations and barn licenses reflects its commitment to simplifying regulatory processes, reducing compliance burdens, and fostering a more conducive environment for agricultural activities, particularly for the large number of tobacco farmers in key producing states.
