The Ministry of Commerce & Industry (MoCI) has issued a notification dated 4th September 2025 allowing the sale of excess and unauthorised Flue-Cured Virginia (FCV) tobacco produced in Andhra Pradesh during the 2024–2025 crop season.
Under Section 20A of the Tobacco Board Act, 1975, the Central Government has authorised the Tobacco Board to facilitate the sale of:
- Excess FCV tobacco produced by registered growers, and
- Unauthorised FCV tobacco produced by unregistered growers,
through auction platforms in the state, subject to a structured contribution to the Tobacco Fund.
🔍 Key Provisions:
- Registered Growers – Up to 10% Excess of Quota
- 🏷️ Charge: 1% of sale proceeds
- 💰 Contribution: Normal service charge to Tobacco Fund.
- Registered Growers – 10% to 20% Excess of Quota
- 🏷️ Additional Contribution: ₹1 per kg + 2% of sale proceeds (excluding 1% normal charge)
- Registered Growers – Above 20% Excess of Quota
- 🏷️ Contribution: ₹1 per kg + 3% of sale proceeds (excluding 1% normal charge)
- Unregistered Growers – Entire Produce
- 🏷️ Contribution: ₹1 per kg + 5% of sale proceeds (excluding 1% normal charge)
📍 Context:
FCV tobacco is a major commercial crop in Andhra Pradesh, and restrictions on its sale due to production beyond quota or lack of registration have long affected growers. This relaxation is seen as a step to support farmers amid market volatility and ensure smoother auction operations for the 2024–25 season.
The move is also aimed at enhancing compliance, increasing contributions to the Tobacco Fund, and bringing unauthorised produce under formal regulation.