Govt grants interest-free loans to Andhra tobacco growers
NEW DELHI : The Centre on Monday approved interest-free loans to tobacco growers in Andhra Pradesh affected by cyclone Michaung in December, according to the commerce ministry. The Tobacco Board had requested the Centre to approve interest-free loans after the cyclone, which caused heavy rains in the state, damaged crops in several regions. In January, Mint reported that the Centre was planning to provide interest-free loans for tobacco farmers.
The Centre has also allowed the sale of FCV or flue cured virginia tobacco on the Tobacco Boards auction platform and waived off penalties on the sale of excess production of registered growers and unauthorized production of unregistered growers in Karnataka. Around 20% of the total planted area, which is 14,730 hectares, was affected by the cyclone. The estimated area planted in the current crop season in Andhra Pradesh was 75,355 hectares.
The tobacco crop suffered due to washing out of crop, drowning of standing crop, waterlogging, and the resultant wilting of standing crop. "In view of the hardships faced by FCV Tobacco growers in Andhra Pradesh, the government has approved ₹10,000 interest-free loan from the Grower Welfare Fund of Tobacco Board to the grower members of the fund, whose crops were damaged due to Michaung cyclonic rains in Andhra Pradesh," the commerce ministry said in an official statement. FCV tobacco is mainly produced in Andhra Pradesh and Karnataka.
The crop season is ongoing in Andhra Pradesh, which has 42,915 FCV tobacco growers. Auctions are also being conducted in Karnataka, which has 39,552 growers. The Karnataka government has declared drought in all except one tobacco-growing taluk.
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