Centre announces relief package for Andhra, Karnataka tobacco farmers

In response to the heavy rains and cyclonic conditions in Andhra Pradesh and Karnataka, the Centre has announced a relief package for FCV tobacco farmers. The package includes interest-free loans and waiving of penalties for the affected farmers.

The Commerce and Industry Ministry stated that the Centre has approved a Rs 10,000 interest-free loan for tobacco farmers in Andhra Pradesh whose crops were damaged by heavy rains in December. The one-time interest-free loan will be recovered from the growers’ auction sale proceeds of the 2023-24 Andhra Pradesh crop season.

Currently, auctions of FCV Tobacco are taking place in Karnataka, where there has been a significant increase in the average price received by tobacco growers compared to last year. The state government has declared drought in all except two FCV Tobacco growing taluks in Karnataka, impacting the livelihood of FCV Tobacco growers.

The Centre has decided to permit the sale of FCV Tobacco on Tobacco Board’s auction platform in Karnataka after waiving off the penalty on the sale of excess production by registered growers and unauthorized production by unregistered growers for the 2023-24 crop season. The FCV tobacco crop in Andhra Pradesh has been severely affected by the heavy rains and cyclonic conditions in December.

The estimated area planted in the current crop season in Andhra Pradesh was significantly impacted, with around 20% of the total planted area affected by the heavy rains. The FCV tobacco crop in Andhra Pradesh has suffered from washing out of crop, drowning of standing crop, water logging, and wilting of standing crop due to the cyclonic rains. Flue Cured Virginia (FCV) Tobacco is predominantly produced in Andhra Pradesh and Karnataka in India.