Andhra tobacco farmers to get interest-free loan of Rs 10,000 each

Tobacco farmers affected by Cyclone Mandous in Andhra Pradesh will be offered a special interest-free loan of Rs 10,000 each as a part of the immediate damage mitigation measures by the central government, the Union Ministry of Commerce and Industry said on Wednesday.

The initiative will directly benefit 28,112 farmers. Union Commerce and Industry Minister Piyush Goyal has sanctioned Rs 28.11 crore for offering the special interest-free loan to tobacco farmers.

The interest-free loan to the eligible Flue Cured Virginia (FCV) tobacco farmers will be administered by the Tobacco Board, a statutory body under the Ministry of Commerce and Industry, Government of India.

The loan will be offered to each member of Tobacco Board’s Growers’ Welfare Schemes under Southern Regions (Southern Light Soil and Southern Black Soil) of Andhra Pradesh from the Tobacco Growers’ Welfare Fund.

Watch | Andhra Pradesh: Farmers face heavy losses due to Cyclone Mandous

"This measure will help the FCV Tobacco farmers overcome the damage caused by Mandous Cyclonic rains and would greatly help the growers to take up immediate damage mitigation measures," the Ministry of Commerce and Industry said in a statement.

Mandous Cyclone affected several parts of Andhra Pradesh and Tamil Nadu in the second week of December. Heavy rains and strong waves and winds resulted in massive damage to agricultural crops.

FCV tobacco is a major commercial crop grown in 10 districts of Andhra Pradesh with an annual production of 121 million kg (2021-22) grown in an area of 66,000 hectares.

FCV tobacco is the major exportable tobacco variety of the total unmanufactured tobacco exports from India. Out of the total unmanufactured tobacco exports (excluding Tobacco Refuse), FCV tobacco exports accounted for 53.62% in terms of quantity and 68.47% in terms of value during the financial year 2021-22.