The Government of India has announced measures to support Flue Cured Virginia (FCV) tobacco growers in Andhra Pradesh and Karnataka, which were affected by heavy rainfall and drought, respectively, impacting crop production in the states.
With the crop season underway in Andhra Pradesh, home to 42,915 FCV tobacco growers, the cyclonic rains have left a trail of devastation across several districts.
The affected regions encompass Eluru, East Godavari, Kakinada, Prakasam, Nellore, Bapatla, Palnadu, and Guntur districts, where approximately 20% of the total planted area, covering 14,730 hectares out of 75,355 hectares, has been adversely impacted. The onslaught of heavy rains resulted in the washing out of crops, drowning of standing crop, waterlogging, and subsequent wilting.
In response to the plight faced by FCV Tobacco growers in Andhra Pradesh, the Government of India has taken proactive measures.
It has sanctioned an interest-free loan of Rs 10,000 from the Grower Welfare Fund of Tobacco Board to the affected growers for the Andhra Pradesh Crop Season 2023-24.
This assistance aims to alleviate the financial burden inflicted by Cyclone MICHAUNG, with the loan amount to be recuperated from the proceeds of the auction sales of the current crop season.
The FCV Tobacco auctions are underway in Karnataka, another major hub for tobacco production in India. With 39,552 FCV tobacco growers in the state, the auctions have seen significant activity.
The Tobacco Board's e-auction platforms have already witnessed the marketing of approximately 85.12 million kilograms of FCV tobacco in Karnataka.
Notably, there has been a commendable 12.49% increase in the average price received by tobacco growers, rising from Rs 228.01 per kilogram last year to Rs 256.48 per kilogram this year. However, the prosperity in Karnataka's FCV Tobacco sector is shadowed by challenges. The State Government of Karnataka has declared drought in all but two FCV Tobacco-growing taluks, severely affecting the livelihoods of the growers.
Responding to this crisis, the Government of India has intervened by allowing the sale of FCV Tobacco on the Tobacco Board's auction platform.
Penalties on the sale of excess production by registered growers and unauthorized production by unregistered growers for the Karnataka Crop Season 2023-24 have been waived off.
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