Since tobacco has long been a cash crop and farmers receive good prices from traders, tobacco is cultivated in 16 districts and 65 talukas of Gujarat.
However, according to the new tax, GST 2.0, coming into effect on 01/02/2026, the government has imposed a burden of 40% GST and 18% excise duty on traders, leaving them in a state of confusion and unwilling to purchase in the new season. If they do not purchase, an estimated 30 lakh farmers across Gujarat will be affected and will be unable to cultivate tobacco, preventing traders from buying the farmers’ produce at a good price.
On 23/01/2026, a letter of appeal was submitted by farmers and traders to the MLA, the APMC Chairman, and the Mamlatdar in Vijapur (Mehsana)
On 24/01/2026, a letter of appeal was submitted by farmers and traders in Unava (Unjha-Mehsana) to the MLA, the APMC Chairman, and the Mamlatdar.
On 27/01/2026, farmers and traders in Dhanera (Banaskantha) submitted a letter of appeal to the Mamlatdar.
The National Farmers’ Organization and the Gujarat Tobacco Growers and Traders Association have jointly protested against the 40% GST and 18% excise duty on unmanufactured raw tobacco.
