Is tobacco (tambaku) profitable and how does the auction and price work?

Tobacco can give attractive returns per acre, which is why it persists despite policy pressure, but it is input and labour heavy, especially curing fuel and barn work, and the net margin depends on the grade you achieve. FCV tobacco is sold through Tobacco Board regulated auction platforms where buyers bid grade by grade, so your colour and grade directly set your price, and the Board announces authorised crop size and indicative prices. Cured leaf yield per acre and the rate vary by region and grade. Because production is capped by authorised area to balance supply, you must stay within your registered quantity. Check the current Tobacco Board auction rates and rules, and ask your KVK and registered growers for realistic yields and costs before deciding.