Tue Oct 07 03:09:58 UTC 2025: ## Karnataka Tobacco Auction Set to Begin Amidst Optimistic Forecasts

**MYSURU, October 7, 2025** – Tobacco auctions in Karnataka are scheduled to commence on October 8th across ten platforms, with expectations of a marginal increase in yield and strong international demand fueling positive price forecasts.

While the Tobacco Board authorized a crop size of 100 million kg for the state in 2025, the anticipated yield is projected to reach approximately 85.16 million kg, a slight increase from last year’s 84.86 million kg. However, a significant shift in quality is expected, with a higher proportion of the more valuable bright grade variety anticipated due to favorable weather conditions and timely fertilizer supply.

“We are expecting a good price this year in view of the good international demand for tobacco cultivated in this region,” stated Vikram Raj Urs, secretary of the Federation of Flue Cured Virginia (FCV) Tobacco Growers’ Associations of Karnataka. “Besides, the average price could go up in view of the higher proportion of bright grade variety.”

Last year’s auction, held between October 2024 and April 2025, saw 84.86 million kg of tobacco marketed at an average price of ₹257.62 per kg. The bright grade variety fetched an average of ₹309.18 per kg, while medium and low grades commanded ₹284.50 and ₹186.79 per kg respectively.

Despite the positive outlook, the area under tobacco cultivation in Karnataka has decreased from 69,049 hectares in 2024 to 66,987 hectares in 2025. The state has 39,585 authorized growers holding approximately 50,000 licenses. The board estimates that around 12,689 farmers cultivated tobacco without licenses this year, contributing to an estimated 10 million kg of unauthorized tobacco.

The majority of Karnataka’s Flue Cured Virginia (FCV) tobacco is exported to major cigarette manufacturers globally. The cultivation is concentrated in the Mysuru region, specifically Periyapatna, Hunsur, and H.D. Kote taluks, as well as Arakalgud and Ramanathapura in the Hassan district.

Four of the ten auction platforms are located in Hunsur taluk, three in Periyapatna taluk, and one in H.D. Kote taluk. The auction season is expected to run until April 2026.

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