Tobacco Price in India Jumps 180.6% to USD 658.15/tonne
Indian tobacco rose to USD 658.15/tonne on 2026-09-01, up 180.6% on the month, as policy measures reshaped the FCV market.
Tobacco in India was quoted at USD 658.15/tonne as of 2026-09-01, up 180.6% from USD 234.58/tonne on 2026-08-01. The price rose 31.0% over the quarter from USD 502.45/tonne on 2026-06-01. Year on year, the price is down 10.0% from USD 731.14/tonne on 2025-09-01, which is also the 52-week high. The 52-week low of USD 234.58/tonne was recorded on 2026-08-01.
Three Indian policy developments coincide with the move. The Hindu reported on 2026-08-02 that the Indian government announced a relief package providing interest-free loans to tobacco farmers, effective August 3. The Tobacco Board reduced the authorized FCV crop size for the 2026-27 season by 43 percent to 81 million kg, according to The HinduBusinessLine on 2026-07-27.
On the demand side, Outlook Business reported on 2026-08-11 that the Andhra Pradesh government mandated that companies purchase FCV tobacco at fixed prices beginning August 11.
The combination of a 43 percent smaller authorized crop, fixed-price procurement and interest-free farmer loans frames the supply conditions behind the August price rise.