Fall in cigarette consumption, decrease in exports and higher excise duty has taken its toll on tobacco prices. Tobacco prices at the ongoing Karnataka tobacco auctions have also fallen by Rs 15 per kg to Rs 40-41 per kg compared to Rs 56 per kg last year.
The falling prices have also put the tobacco growers in a dilemma, especially in Andhra Pradesh, where the auctions will begin from the last week of January.
Speaking to Business Standard, P Dayachari, chairman of the Tobacco Board said:
