- The Center is examining a proposal to offer interest-free loans to 15,000 tobacco growers in Andhra.
- Interest-free loans with a six-month term that ranges from ₹10,000 to ₹20,000 will be provided.
- In the first eight months of the current fiscal year, India exported tobacco valued at $981.05 million.
According to two officials with knowledge of the situation, the Center is examining a proposal to offer interest-free loans to 15,000 tobacco growers in Andhra Pradesh who were affected by Cyclone Michaung.
According to the officials, interest-free loans with a six-month term that ranges from ₹10,000 to ₹20,000 will be provided to encourage tobacco replanting. The Tobacco Board’s recommendation is being reviewed by the trade ministry, and a decision is anticipated shortly, they continued.
Tobacco farmers
A fifth of all tobacco produced in India is produced in the state of Andhra Pradesh, which suffered severe losses from the storm Michaung. With 9% of the world’s total tobacco production, India is the second-biggest producer in the world.
Farmers and members of Parliament have expressed a desire to offer temporary help to the state’s impoverished and marginalized farmers as a result of the hurricane. Approximately 800 million kilograms of tobacco are produced in India each year, with Gujarat accounting for 45% of the overall production.
While the harvesting season starts in March and lasts until June, the planting season begins in November and lasts until mid-January. Tobacco exports are performing well; the price realized at auction was 10% more than the previous year.
In the first eight months of the current fiscal year, India exported tobacco valued at $981.05 million. The US, Yemen, Egypt, Singapore, the Netherlands, the Philippines, Turkey, and Nepal were among the main export destinations, along with Belgium, the UAE, Indonesia, Russia, Korea, and the US.
