VIJAYAWADA: TDP MP Lavu Sri Krishna Devarayalu on Wednesday extended support to the Central Excise Amendment Bill, 2025, while urging the Union government to simultaneously protect the interests of tobacco farmers in the State.
Participating in the Lok Sabha debate, he said shifting from the GST Compensation Cess to Central excise would ensure revenue stability for the Centre and maintain tax predictability on tobacco products. He credited PM Modi’s GST reforms for lowering household expenditure and boosting national consumption.
He, however, highlighted the severe distress gripping tobacco growers in Palnadu, Guntur and Prakasam districts. Indebtedness, rejections at auction platforms, unsold stocks, and a steep fall in prices due to weakened domestic and international demand have left thousands of families in crisis. Without targeted support, he warned, higher duties could reduce procurement and intensify farmers’ financial burden.
Taking strong exception to ITC Ltd, one of the country’s biggest tobacco companies, Devarayalu said the corporation had failed to employ its CSR funds for farmers’ welfare or diversification, despite posting a Rs 5,187-crore net profit in Q2 FY26. He pointed out that when prices collapsed this season, it was the AP government that stepped in with Rs 278 crore to stabilise prices.
Backing CM Naidu’s appeal to the Union Commerce Ministry, the MP urged the Centre to share the financial load, mandate transparent CSR spending by tobacco firms.