Centre may bailout crisis-hit tobacco farmers in AP
The Indian government is considering a financial bailout for crisis-hit tobacco farmers in Andhra Pradesh, aiming to support livelihoods affected by falling prices and rising input costs. Get the latest updates on policy support, subsidies, and relief measures.
Centre may bailout crisis-hit tobacco farmers in AP
The Government of India is expected to announce a bailout package for the distress-hit tobacco farmers of Andhra Pradesh following the recent visit of Union Minister for Commerce Piyush Goyal. The Minister hinted at considering price stabilisation and some sort of assistance to help the farmers to tide over the present crisis. Guntur is the main tobacco production hub in India and Andhra Pradesh being the largest tobacco producer accounted for a lion's share in India's total export turnover of Rs.12,005 crore during 2023-24. The revenue almost doubled compared to 2019-20. However, bumper production due to increase in area under cultivation due to hopes of high returns has led to a price crash in Andhra Pradesh.
The Centre has promised price stabilisation through a multi-pronged approach. Farmers say the price of premium quality tobacco, which used to fetch Rs.18,000 a quintal five years ago, is now being procured for around Rs.10,000 forcing them not to meet even their investment on cultivation.
Sources in the Tobacco Board in Guntur told Bizz Buzz that Goyal, who held talks with the tobacco farmers and officials after a meeting with Chief Minister N. Chandrababu Naidu at Amaravati responded positively to their pleas for immediate intervention to give relief to the crisis-hit tobacco farmers, who were facing the problem following the price crash. Oversupply has led to nosediving of prices.
The State Government has urged Goyal to immediately release Rs.150 crore. The State has already spent Rs.300 crore to buy 20 million kg HD Burley tobacco. If Rs.150 crore is borne by the Centre, this will help the State Government's financial woes to some extent, Naidu told Goyal during the meeting with him. The State has already set up procurement centres at Bapatla, Guntur, Palnadu and other places. India is the second largest producer of tobacco after China. The Flue Cured Virginia (FCV) variety, which is in high demand in the overseas market, is also produced in large quantities in India. The country is ranked fourth in producing this variety after China, Brazil and Zimbabwe. India is the second largest exporter of unmanufactured tobacco after Brazil.
