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

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

Interest-free Loans for Andhra Tobacco Farmers

  • Terms of loan: The  interest-free loans, varying between ₹10,000 and ₹20,000, will be for a period of six months and will support replanting of tobacco.
  • It will be provided to around  15,000 tobacco farmers in Andhra Pradesh who are impacted by cyclone Michaung (made a landfall in  Andhra Pradesh and Tamil Nadu on 5th december)
  • The proposal is being  forwarded by the Tobacco Board.

About Tobacco Board

  • Establishment: The government of India under the Tobacco Board Act of 1975, established the Tobacco Board.
  • Nodal ministry: Ministry of Commerce and Industry
  • Headquarters: Guntur, Andhra Pradesh
  • Functions:
    • It acts as a facilitator to the tobacco growers, traders and exporters. 
    • It promotes all categories of tobacco and allied products, overseeing the production and distribution of the products for domestic as well as exports
    • Regulating the Flue-cured Virginia (FCV) tobacco.

About Tobacco 

  • Production: India is the world’s second-largest tobacco producer after China with around 800 million kg of tobacco produced annually. 
    • Gujarat is the highest producer with 45% of total production, followed by Andhra Pradesh and Uttar Pradesh.
    •  India’s Major exporting Destinations:  Belgium, the UAE, Indonesia, Russia, Korea, the US, Yemen, Egypt, Singapore, Netherlands, Philippines, Turkey and Nepal.
  • Cultivation: India has around 0.45 million hectares of area under tobacco cultivation accounting for (only 0.31% of net cultivated area in the country) and  10% of the total area globally. 
  • Conditions for growth:
    • Temperature: It requires a temperature range between 20 and 30°C with a frost-free period of 90 to 120 days.
    • Rainfall:  A dry period is required for the ripening of the leaves. Excess rainfall results in thin, lightweight leaves.
    • The planting season starts at around November-end to mid-January. The harvesting period is from March to June.
    • Soil: The crop is sensitive to waterlogging and demands well-aerated and drained soils. The optimum pH ranges from 5 to 6.5.  Flue-cured, light tobacco requires light sandy soil while Air-cured, dark tobacco is grown in silty loam to clay loam.
    • Transplantation: Tobacco is sown on seed beds and is transplanted 40 to 60 days after sowing when the plants are about 15 cm tall.

Government Initiatives

  • Tobacco Growers Welfare Scheme: A Tobacco Board’s Growers’ Welfare Fund has been approved by the Ministry of Commerce and Industry with a total corpus of  Rs. 25 crore.
  • Rashtriya Krishi Vikas Yojana (Remunerative Approaches for Agriculture and Allied Sectors Rejuvenation): It is a Crop Diversification Programme to encourage tobacco farmers in various states, to transition to alternative crops.


News source
: Livemint

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