In this paper, an attempt has been made to analyze the value chain of Bidi and FCV tobacco in Karnataka as it is one of the important states producing Bidi tobacco and FCV tobacco. The analysis is mainly based on the primary data collected from various actors along the value chain of tobacco using the semi-structured schedules in Nippani and Mysore regions for Bidi tobacco and FCV tobacco crops respectively. The paper identifies the need for improving the performance of weak actors, namely farmers, and controlling dominant actors (manufacturers) along the value chain through institutional interventions keeping in view the larger societal need to control tobacco consumption.