The Hunsur tobacco market opened on Friday with more than 40,000 farmers from the Old Mysuru region hoping that competitive auctions will help them recover cultivation costs and ease financial pressure after producing Virginia tobacco amid rainfall shortages.
Farmers across nine taluks have prepared their tobacco bales for sale at the market, which is a major economic link for the region. The Tobacco Board had set a production target of 56 million kg for Karnataka for the 2026-27 season, but the board’s reported output is between 90 million kg and 92 million kg. Selling the additional quantity of roughly 40 million kg is expected to be a major challenge.
The growers cultivated tobacco across 59,000 hectares despite deficient rainfall. Their immediate concern is whether the auction system can deliver prices that reflect the quality of the crop and cover rising financial obligations. The market’s performance will depend on demand from buyers and the volume of tobacco brought for sale, according to Gopal, regional manager of the tobacco auction market.
In the 2025-26 market season, tobacco was sold at an average price of ₹252.60 per kg, according to the regional manager. First-grade tobacco fetched ₹278 per kg, while second-grade tobacco received ₹245 per kg and third-grade tobacco received ₹183 per kg. The report also cites an average farmer realisation of ₹278 per kg in the previous season.
Gopal said companies had already been approached ahead of the auction, but the final price could not be predicted because it would be determined by demand and supply. The tobacco market is also operating in Andhra Pradesh this season, adding another factor to the uncertainty around buyer participation and pricing in Karnataka.
The excess production remains linked to the Tobacco Board’s approval process. Karnataka’s growers produced considerably more than the 56 million kg allocation, and the additional tobacco can be sold if the board grants permission for its marketing. The decision is important for farmers whose produce exceeds the notified quantity and could otherwise face difficulty entering the auction system.
The district farmers’ association president, Hosuru Kumar, said farmers had produced quality tobacco despite the drought and would need a first-grade price of ₹320 per kg to make a profit. Without such returns, he said, growers could fall deeper into debt. He also called for buyers to pay according to quality and for foreign purchasing companies to be allowed to participate, arguing that greater competition could improve prices.
The auction market is restricting participation to farmers carrying identity cards. The measure is intended to prevent commission agents from entering the market directly. An ATM-style machine has also been installed to provide information about the condition of tobacco bales brought to the auction. Farmers can use their registration number to access details about their bales, Gopal said.
The Hunsur auction will therefore determine not only the price of this season’s crop but also how effectively the regulated market manages excess production, buyer participation and direct farmer access. The immediate milestones are the auction process, the prices offered for different grades and any decision by the Tobacco Board on marketing the additional tobacco produced in Karnataka.
