Union Minister for Commerce and Industry, Shri Piyush Goyal, assured farmers that the government is dedicated to protecting their interests, reflecting Prime Minister Narendra Modi’s sensitivity towards farmers’ challenges. The minister pledged to address the concerns of tobacco farmers and the industry during a meeting held at Novotel, Shamshabad, Hyderabad on June 29, 2024.
During the meeting with tobacco farmers, manufacturers, and exporters, Shri Goyal expressed satisfaction over the record-high prices achieved for flue-cured Virginia (FCV) tobacco and the outstanding export performance of Indian tobacco for the fiscal year 2023-24. He highlighted that, as of June 27, 2024, an average price of Rs. 269.91 per kg had been achieved for 112.35 million kg of FCV tobacco sold through electronic auctions by the Tobacco Board. Additionally, the export value of unmanufactured tobacco and tobacco products reached Rs. 12,005.80 crore (USD 1,449.50 million), marking an increase of 11.3% in rupee terms and 19.5% in dollar terms over the previous year.
Farmers and traders thanked the minister for the opportunity to voice their issues, which included labour shortages, the need for farm mechanization assistance, high costs of sulphate of potash (SOP) fertilizer, penalties on excess tobacco production, and increased fuel costs for tobacco barns. Exporters requested inclusion under the RoDTEP scheme to gain export incentives and sought help in curtailing unauthorized production and use of chewing tobacco, as well as addressing illicit cigarette sales.
Shri Goyal acknowledged the challenges faced by the tobacco farmers and industry and reiterated the government’s commitment to their welfare. He announced several measures to address these issues:
- Staff Shortage: Immediate action will be taken to address the staff shortage in the Tobacco Board.
- Penalty Waiver: Efforts will be made to waive penalties on excess tobacco production for the current year.
- Registration Validity: The validity period for registration will be extended from one year to three years, with digital registration encouraged but not mandatory, benefiting small farmers.
- Interest Subvention: Farmers were urged to utilize the interest subvention facility under the Agriculture Infrastructure Fund, which offers a 3% interest subsidy for developing modern infrastructure in tobacco production.
- Education Loans: The Tobacco Board was advised to provide interest-free higher education loans to the children of tobacco farmers, with a repayment period of seven years.
- Financial Assistance: Increased financial assistance will be provided to farmers during natural calamities.
Shri Goyal also directed the Director of ICAR-CTRI to focus on developing mechanization in tobacco cultivation, finding alternatives to SOP fertilizer, creating suitable plant protection chemicals to avoid objectionable residues in tobacco, and developing barns that use solar and electric power for curing tobacco.
The meeting was also attended by Smt. D. Purandeshwari, M.P. Rajamahendravaram; Sri Rajesh Agrawal, Additional Secretary, Department of Commerce; Sri Ch. Yashwanth Kumar, Chairman, Tobacco Board; and Dr. Sridhar Babu Addanki, Executive Director, Tobacco Board.
