Amaravati, February 04, 2026: Andhra Pradesh Chief Minister N. Chandrababu Naidu welcomed a Union government notification that reduces excise duty to zero on unbranded, unpacked raw tobacco sold in bulk by farmers.
The change, effective from February 1 under HS Code 2401, targets unprocessed tobacco without branding or retail packaging, while branded or packaged products retain an 18% duty.
The decision resolves past ambiguities that led to disputes, losses for growers, and supply chain hurdles. Naidu called it a step toward clarity, uniformity, and transparency in taxation.
It promises better prices for farmers, support for small traders, smoother operations, and stronger exports from Andhra Pradesh, a major tobacco-producing state.
