New Delhi : Minister of Commerce & Industry Piyush Goyal has approved the sale of excess Flue Cured Virginia tobacco produced by registered growers on auction platforms in Andhra Pradesh for the 2023-24 crop season. This decision includes waiving additional service charges at Tobacco Board auction platforms, in response to the widespread crop damage caused by "Michaung" cyclonic rains from December 3rd to 5th, 2023. This initiative aims to ease the financial burden on farmers who face extra expenses for replanting and gap-filling in their fields.
During this crop season in Andhra Pradesh, 43,125 farmers cultivated FCV tobacco across 97,127.07 hectares, yielding a total production of 205.5 million kilograms. The decision to implement Zero Penalty on the sale of excess Flue Cured Virginia tobacco produced by registered growers on auction platforms for the 2023-24 crop season is poised to significantly benefit farmers in Andhra Pradesh.
This measure aims to assist them in recovering from the losses caused by cyclonic rains, providing crucial financial support during this challenging period. It is expected to alleviate the financial distress of FCV tobacco farmers and ensure they can sustain their livelihoods effectively.
Loan Assistance
The central government sanctioned an interest-free loan for FCV tobacco growers in Andhra Pradesh in February 2024, who suffered crop losses during the Michaung cyclone that struck the state last December.
From December 3rd to 5th last year, the Michaung cyclone brought heavy rainfall to Andhra Pradesh, severely impacting FCV tobacco crops in districts including Eluru, East Godavari, Kakinada, Prakasam, Nellore, Bapatla, Palnadu, and Guntur. Approximately 20% of the total planted area, amounting to 14,730 hectares out of 75,355 hectares planted this season, was affected. The crop damage included washing out, drowning, water logging, and wilting of standing crops.
In response to the challenges faced by FCV tobacco growers in Andhra Pradesh, the Centre had approved a one-time interest-free loan of Rs 10,000 from the Grower Welfare Fund of the Tobacco Board. This loan is specifically for the 2023-24 Andhra Pradesh crop season and will benefit grower members of the fund whose crops were damaged by the Michaung cyclonic rains. The loan amount will be recovered from the auction sale proceeds of the 2023-24 Andhra Pradesh crop season.
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