Centre Allows Sale of Excess and Unauthorised FCV Tobacco in Andhra Pradesh for 2024-25 Season [Read Notification]
According to the Ministry of Commerce and Industry, the relaxation permits registered growers to sell FCV tobacco produced in excess of their authorised quota, as well as unregistered growers to sell their unauthorised produce…
Excess and Unauthorised
Excess and Unauthorised
The Central Government has issued a significant relaxation under the Tobacco Board Act, 1975, permitting the sale of excess and unauthorised Flue Cured Virginia (FCV) tobacco in Andhra Pradesh during the 2024-25 crop season. The decision, announced through a Gazette notification, comes in response to exceptional circumstances and has been allowed strictly in the public interest.
According to the Ministry of Commerce and Industry, the relaxation permits registered growers to sell FCV tobacco produced in excess of their authorised quota, as well as unregistered growers to sell their unauthorised produce, through the Tobacco Board’s designated auction platforms.
This one-time measure is aimed at addressing the glut in production and ensuring legal market channels for the crop, while also safeguarding regulatory control.
The notification clarifies that the relaxation is limited to the current crop season (2024-25) and is accompanied by a set of stringent conditions designed to regulate sales and generate contributions to the Tobacco Fund.
For registered growers, the following conditions apply:
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- Up to 10% excess over the authorised quota will attract a normal service charge of 1% of sale proceeds.
- Between 10% and 20% excess, growers must contribute ₹1 per kilogram and 2% of sale proceeds, in addition to the standard service charge.
- Beyond 20% excess, growers will pay ₹1 per kilogram plus 3% of sale proceeds.
For unregistered growers producing unauthorised FCV tobacco, the levy is stricter: ₹1 per kilogram along with 5% of sale proceeds, apart from the normal service charge. All these contributions will flow into the Tobacco Fund, which is utilised for welfare and developmental purposes within the tobacco-growing community.
The Central Government has emphasised that this conditional approval does not imply permanent relaxation of statutory restrictions under the Tobacco Board Act. The measure has been taken to address immediate challenges faced by growers in Andhra Pradesh, who account for the bulk of India’s FCV tobacco output.
Notably. sales will be permitted only through the Tobacco Board’s authorised auction platforms, ensuring transparency and traceability in transactions. Registered traders and dealers of the Tobacco Board have been authorised to purchase this
tobacco under the specified framework.
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