New Delhi, Jan. 2 -- The Federation of All India Farmer Associations (FAIFA) has raised serious concerns over a steep increase in excise duties on tobacco products, warning that the move could severely impact farmers' livelihoods, fuel illicit trade, and distort India's tobacco economy.
FAIFA's reaction follows a notification issued by the Ministry of Finance under the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026.
The notification imposes an excise duty ranging from Rs 2,050 to Rs 8,500 per 1,000 sticks on cigarettes, depending on length, effective February 1, 2026.
According to the farmers' body, the sharp tax hike contradicts earlier government assurances...