Where and How Tobacco Is Grown
FCV tobacco is grown under Tobacco Board registration in Andhra Pradesh (Prakasam, Nellore, Guntur and the Godavari districts) and Karnataka (Mysuru, Hassan, Chamarajanagar). Leaves are cured in barns with hot air and sold at the Board's auction platforms. Gujarat (Anand, Kheda, Vadodara) grows bidi and chewing tobacco; Burley, HDBRG and other types grow in Andhra and elsewhere.
- Tobacco BoardGuntur · regulates FCV crop and runs e-auctionsAboutExplore
- ITC Ltd (Leaf Tobacco Business)Guntur · leaf buyer and exporterAboutExplore
- Godfrey Phillips India LtdLeaf buyerAboutExplore
- VST Industries LtdHyderabad · leaf buyerAboutExplore
- ICAR – Central Tobacco Research InstituteRajahmundryAboutExplore
Tobacco use causes serious disease. This page covers the agricultural trade only.
The Auction System
The Tobacco Board fixes each season's FCV crop size and registers growers and barns. Growers bring cured bales to Board-run auction platforms, where registered buyers bid through an electronic system; the Board publishes average prices for each platform and grade. This makes FCV tobacco one of the most tightly regulated farm trades in India.
Grades and Quality
Leaf is graded by stalk position (lugs, cutters, leaf, tips), colour (lemon, orange, mahogany), body and cleanliness. Bright, uniform leaf from the Northern Light Soils of Andhra and the Karnataka Light Soils fetches the highest prices, while traditional black-soil leaf is cheaper. Buyers test for nicotine, sugar and residues.
Exports
India exports unmanufactured leaf to Belgium, Indonesia, the UAE, Egypt, Russia, the Philippines and many other countries, largely through threshing plants in Andhra Pradesh and Karnataka that strip leaf from stem and pack it in cartons.
Price Drivers
Global leaf shortages from Brazil, Zimbabwe or the USA raise Indian auction prices; an oversized Indian crop or weak exports pull them down. Taxes on cigarettes and bidis also shape domestic demand.
Tobacco by State
Tap a state for its districts, markets, government buying and buyers.
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