In a major relief to tobacco farmers, the Government of India has announced that the registration of Virginia tobacco growers and licenses for operating barns will now be valid for three years instead of the current one-year validity. This move aims to ease the burden on farmers by eliminating the need for annual renewals, streamlining the process, and promoting ease of doing business in the sector.
The revised rules are expected to benefit approximately 83,500 farmers and cover nearly 91,000 barns across tobacco-growing states like Andhra Pradesh, Karnataka, Telangana, and Odisha. By extending the registration and licensing period, farmers can focus more on cultivation and production without the hassle of yearly paperwork.
Virginia tobacco cultivation in India is governed by the Tobacco Board Act, 1975. This Act makes it mandatory for farmers to obtain a certificate of registration before starting cultivation and to secure a barn license for processing the tobacco.
Previously, these registrations and licenses were issued on an annual basis through the Tobacco Board. However, with this policy update, they will now be valid for three years, significantly reducing regulatory hurdles and simplifying the process for growers.
To implement this change, the government has amended specific rules under the Tobacco Board Rules, 1976. These include sub-rules (5), (6), and (7) of Rule 33 and sub-rules (2) and (3) of Rule 34N. The updated rules have been officially published in the Gazette of India by the Ministry of Commerce and Industry, Department of Commerce. The new validity system will come into effect starting with the 2025-26 crop season, initially in Andhra Pradesh.
India holds a significant position in the global tobacco market, being the second-largest producer and fourth-largest exporter of unmanufactured tobacco in value terms in 2023.
The tobacco sector remains an important contributor to the Indian economy. In the financial year 2024-25, tobacco exports generated USD 1,979 million (approximately Rs 16,728 crore).
