Centre Plans Interest-free Loans for Andhra’s Cyclone-hit Tobacco Farmers

25 Jan 2024 3 mins Download PDF

Context: The Central government is considering a proposal to provide interest-free loans to tobacco farmers of Andhra Pradesh impacted by Cyclone Michaung.

News:

Interest-Free Loans for Andhra Tobacco Farmers:

• Loan Details: Andhra Tobacco farmers are set to receive interest-free loans ranging from ₹10,000 to ₹20,000, with a repayment period of six months. These loans aim to assist in the replanting of tobacco crops.
• Beneficiaries: Approximately 15,000 tobacco farmers in Andhra Pradesh, who have been affected by the impact of Cyclone Michaung (which made landfall in Andhra Pradesh and Tamil Nadu on December 5th), will be eligible for these loans.
• The proposal for these interest-free loans is being put forth by the Tobacco Board.

About Tobacco Cultivation in India:

• Production: India holds the position of the world's second-largest tobacco producer, producing approximately 800 million kg annually, following China. Gujarat leads in production, contributing 45% to the total, followed by Andhra Pradesh and Uttar Pradesh.
• Major Export Destinations: India's significant tobacco export destinations include Belgium, the UAE, Indonesia, Russia, Korea, the US, Yemen, Egypt, Singapore, Netherlands, Philippines, Turkey, and Nepal.
• Cultivation Area: India dedicates around 0.45 million hectares to tobacco cultivation, constituting only 0.31% of the nation's net cultivated area and 10% globally.
• Growing Conditions:
  • Temperature: Tobacco requires a temperature range of 20 to 30°C, along with a frost-free period lasting 90 to 120 days.
  • Rainfall: A dry period is essential for leaf ripening, and excessive rainfall results in thin and lightweight leaves.
  • Planting and Harvesting: Planting season spans from November-end to mid-January, with harvesting occurring from March to June.
  • Soil: The crop is sensitive to waterlogging and thrives in well-aerated, well-drained soils. The optimal pH range is 5 to 6.5. Flue-cured, light tobacco prefers light sandy soil, while air-cured, dark tobacco is cultivated in silty loam to clay loam.
  • Transplantation: Tobacco is initially sown on seed beds and transplanted 40 to 60 days after sowing when plants reach approximately 15 cm in height.

About the Tobacco Board:

Establishment: The Tobacco Board was formed by the Government of India through the enactment of the Tobacco Board Act in 1975.

Nodal Ministry: The Ministry of Commerce and Industry is the overseeing ministry for the Tobacco Board.

Headquarters: The Tobacco Board is headquartered in Guntur, Andhra Pradesh.

Functions:

1. Facilitation: The board serves as a facilitator for tobacco growers, traders, and exporters within the industry.
2. Promotion: It actively promotes all types of tobacco and related products, overseeing their production and distribution for both domestic consumption and exports.
3. Regulation: The board is responsible for regulating Flue-cured Virginia (FCV) tobacco, ensuring adherence to specified standards and guidelines.

Government Initiatives in the Tobacco Sector:

• Tobacco Growers Welfare Scheme:The Ministry of Commerce and Industry has sanctioned the establishment of a Tobacco Board's Growers' Welfare Fund, with a total corpus of Rs. 25 crore, aimed at enhancing the welfare of tobacco growers.
• Rashtriya Krishi Vikas Yojana (Remunerative Approaches for Agriculture and Allied Sectors Rejuvenation): This initiative, which is part of a Crop Diversification Programme, encourages tobacco farmers across different states to shift towards cultivating alternative crops, promoting diversification in agriculture.