The government has greenlit a relief measure in the form of an interest-free loan amounting to ₹10,000 for tobacco farmers in Andhra Pradesh who suffered losses from the Michaung cyclonic rains, according to an official announcement on Monday.
The loan, specified for the 2023-24 crop season, aims to aid growers grappling with the aftermath of the natural disaster, as stated by the commerce ministry. Reimbursement of the loan will be facilitated through deductions from the proceeds of auction sales pertaining to the 2023-24 crop season.
"Recognising the challenges faced by flue-cured Virginia (FCV) tobacco producers in Andhra Pradesh, the Government of India has sanctioned a ₹10,000 interest-free loan from the Grower Welfare Fund of the Tobacco Board to eligible members, whose crops suffered due to the Michaung cyclonic rains in the state," the statement read.
FCV tobacco is mainly produced in Andhra Pradesh and Karnataka. Crop season is going on in Andhra Pradesh, which has 42,915 FCV tobacco growers and auctions are going on in Karnataka which has 39,552 growers.
During December 3-5, 2023, the cyclone had caused heavy rains in Andhra Pradesh. The FCV tobacco crop grown in Andhra Pradesh covering Eluru, East Godavari, Kakinada, Prakasam, Nellore, Bapatla, Palnadu and Guntur districts has been severely affected due to these cyclonic rains.
The estimated area planted in the current crop season in Andhra Pradesh was 75,355 hectare. Out of this, 14,730 hectare, that is around 20 per cent has been affected due to these heavy rains. The crop has been impacted by washing out of crop, drowning of standing crop, water logging and resultant wilting of standing crop.
Currently, auctions of these tobacco are going on in Karnataka. It also said that in Karnataka, the state government has declared drought in all except 2 FCV tobacco growing taluks.
"This has affected the livelihood of FCV tobacco growers. Due to this, Government of India has decided to permit the sale of FCV tobacco on Tobacco Boards auction platform after waiving the penalty on the sale of excess production of registered growers and unauthorized production of unregistered growers for Karnataka crop season 2023-24 only," the ministry said.
(With inputs from PTI)
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