In his letters, the Chief Minister explained that farmers who grow Flue Cured Virginia (FCV) tobacco are struggling due to higher GST and excise duties on cigarettes. Because of these taxes, tobacco purchases in the market have dropped. As a result, prices have also fallen sharply.

Last year, FCV tobacco sold for around ₹280 per kg, but the price has now dropped to about ₹250. Companies have reduced their orders, and exporters are also facing challenges due to global market conditions.

The Chief Minister said these developments threaten the livelihoods of about 43,000 farmers and many workers who depend on this sector. CM Chandrababu writes letters to Union Ministers requesting a review of the tax policy and immediate relief for the tobacco industry.

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