Karnataka Tobacco Board Reduces Crop Size Amid Price Decline and Market Challenges

Following a recent tobacco price decline in Karnataka due to increased taxes and reduced demand, the Tobacco Board has lowered the crop size for 2026-27 from 100 million kg to 90 million kg to support remunerative pricing. Elected representatives urged traders, including ITC Limited, to raise procurement prices and suggested inviting foreign buyers to diversify the market. The board noted no restrictions on foreign participation. Crop diversification initiatives promoting alternatives like sandalwood were also discussed amid market challenges.