Govt waives penalty, approves interest-free loan of FCV tobacco growers

The Ministry of Commerce & Industry have announced measures to support tobacco growers impacted by heavy rainfall, drought in Andhra Pradesh and Karnataka

The Government of India has announced measures to support Flue Cured Virginia (FCV) tobacco growers in Andhra Pradesh and Karnataka, which were affected by heavy rainfall and drought, respectively, impacting crop production in the states. For Andhra Pradesh, the Ministry of Commerce & Industry has approved interest-free loans for growers, while penalties for excess production have been waived in Karnataka.

The FCV Tobacco is only produced in two states in India. In Andhra Pradesh, there are 42,915 FCV tobacco growers, while Karnataka has 39,552 FCV tobacco growers.

In Andhra Pradesh, where the recent MICHAUNG cyclone caused significant damage to FCV tobacco crops across multiple districts, the government has approved an interest-free loan of Rs 10,000 from the Grower Welfare Fund of the Tobacco Board. Nearly 20 per cent of the total planted crop in Andhra Pradesh were affected by heavy rains. Crops were washed out, standing crops drowned, and water logging in areas resulted in wilting of crops. This financial aid aims to provide immediate relief to growers affected by crop damage, enabling them to recover and sustain their livelihoods. The loan amount will be recovered from the proceeds of the auction sales of the 2023-24 crop season.

 

Meanwhile, in Karnataka, where drought conditions have impacted FCV tobacco cultivation in several taluks, the government has announced measures to support growers. Recognising the challenges faced by growers, the government has permitted the sale of FCV tobacco on the Tobacco Board's auction platform. Additionally, penalties for excess production by registered growers and unauthorised production by unregistered growers for the 2023-24 crop season have been waived off. These actions aim to ease the financial burden on growers and facilitate the sale of their produce, ensuring they receive fair prices for their crops despite the adverse conditions.

Karnataka also witnessed a 12.49 per cent increase in the average price received by tobacco growers to Rs 256.48 per kg this year, compared to Rs 228.01 per kg the previous year.