New Delhi, In response to the impact of cyclone Michaung on tobacco farmers in Andhra Pradesh, the Central government is contemplating a scheme to provide interest-free loans to approximately 15,000 affected farmers. The proposal, currently under consideration by the commerce ministry based on recommendations from the Tobacco Board, involves loans ranging from ₹10,000 to ₹20,000 with a tenure of six months. The primary aim is to support the replanting of tobacco, given the substantial losses incurred by farmers in the state, which contributes a fifth of India’s total tobacco production.
The cyclone, which struck on December 5, severely affected tobacco cultivation in Andhra Pradesh, prompting representations from farmers and Members of Parliament seeking interim relief for the marginalized and economically challenged farmers.
India, the world’s second-largest tobacco producer after China, accounts for 9% of global production. Despite the setback caused by the cyclone, overall tobacco exports from India have performed well. The international prices, coupled with corrections, have positively influenced agricultural product prices, leading to a 10% higher price realization in auctions compared to the previous year.
India Brand Equity Foundation (IBEF) reports that the tobacco industry employs around 36 million people, with six million being farmers and 20 million in farm labor. Additionally, 10 million individuals are engaged in processing, manufacturing, and exports.
The agriculture ministry, under the Rashtriya Krishi Vikas Yojana, promotes a crop diversification program encouraging tobacco farmers in various states, including Andhra Pradesh, to transition to alternative crops.
