Mysuru: This season, the high-quality tobacco did not fetch more than Rs 320 per kilogram in the district markets. However, farmers are now worried about a price crash following the increase in the tax on tobacco products such as cigarettes and pan masala.However, many are expressing confidence that after the Sankranti festival, prices may go up to Rs 400 per kg.According to the farmers, prices are currently between Rs 320 and Rs 230. The average price for high-quality tobacco is Rs 311.67 per kg, while for medium quality it is Rs 290.79 per kg. Low-grade tobacco is bought at an average price of Rs 260.53 per kg.They pointed out that with the tax on various popular tobacco products going up from Feb 1, they fear a drop in rates.“When the tax goes up, naturally there will be a drop in demand. It will affect the prices of raw materials,” explained Rakesh, an MBA graduate and tobacco grower. “In India, the biggest challenge is smuggling of tobacco products such as cigarettes. Many allege that 1 in every cigarette sold in our country is sold illegally. This tax hike may result in more smuggling,” he said.Karnataka Rajya Raitha Sangha’s Mysuru district unit president Hosuru Kumar, who is also a tobacco grower, expressed similar concern. He stated that there is ambiguity among farmers about the drop in rates.“The tobacco companies are making huge profits while the farmers are getting low rates. The Swaminathan committee formula must be followed to ensure a fair price for tobacco growers,” he urged.Contrary to this, Tobacco Board former member Vikram Gowda said prices are expected to surge in the coming days, especially after Sankranti, due to export demand. “80% of the tobacco grown in the state is exported. The tax hike on tobacco products will not affect the prices. The prices are expected to touch Rs 400,” he said.BOXTax is welcome: Doctor Dr BS Ajaikumar, executive chairman of HCG Cancer Centres and founder of Bharath Hospital & Institute of Oncology, welcomed the centre’s decision on increasing tax on tobacco products. He stated that the farmers need to be supported to shift alternative crops. “I support banning all kinds of tobacco products,” he said. He advised the central govt to utilise the tax collected to create awareness against the ill effects of tobacco products.
