FAIFA Raises Alarm Over Sharp Price Hike of Finished Goods: Warns of Severe Impact on Farmers

<ul class='hocal_short_desc'><li>A steep increase in taxes on tobacco products vide rate notification following the Central Excise (Amendment) Bill, 2025 has caused deep concern among farmers and rural stakeholders.</li><li>Farmers are already under stress due to falling export realisations, flat domestic prices, rising input costs, and shrinking cultivation areas imposed by regulatory caps.</li><li> Excessive taxation has historically failed to reduce consumption, has instead expanded illicit trade and causing revenue loss to the exchequer. Current tax increase will push consumers towards smuggled and illegal products, directly harming Indian farmers and benefiting foreign producers.</li><li> FAIFA urges the government to roll-back the excessive hike in taxes, and re-issue rates that are revenue-neutral to protect farmer livelihoods while discouraging smuggling.</li></ul>