The 2023–24 season witnessed an unprecedented rise in FCV tobacco prices in Andhra Pradesh, fueled by strong export demand. Farmers across the state reaped enormous gains, with average auction rates reaching ₹288.65 per kg, while premium grades commanded as much as ₹411 per kg. The total volume sold reached 215.35 million kg, translating into cumulative earnings exceeding ₹6,300 crore.
The auction season, held across 16 platforms over 178 days, saw participation from over 43,000 growers. In addition to headline prices, many benefited from penalty waivers on the sale of excess produce—relief that added nearly ₹184 crore in value to farmers’ incomes. The rise in global demand for Indian FCV tobacco played a pivotal role in pushing prices higher, compensating for supply constraints in other major producing countries.
On the export front, tobacco shipments crossed the ₹12,000 crore mark, reinforcing India’s position in the global leaf tobacco market. Industry analysts say the combination of controlled supply, quality improvements, and favorable government policies helped align pricing dynamics in favor of growers. This season’s gains signal renewed optimism for tobacco farmers, while export proceeds provide a boost to the country’s foreign exchange inflows.
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