Tobacco Farmers in Andhra to Get Interest-Free Loans Post Cyclone Impact
Tobacco Farmers in Andhra to Get Interest-Free Loans Post Cyclone Impact
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The Central government plans to offer interest-free loans to tobacco farmers in Andhra Pradesh who were affected by cyclone Michaung. Approximately 15,000 farmers will benefit from this initiative, aimed at aiding their recovery from the cyclone's impact.

These loans, ranging from Rs.10,000 to Rs.20,000, will assist farmers in replanting tobacco. The proposal, put forth by the Tobacco Board, is under consideration by the commerce ministry. Officials anticipate its approval shortly.

Cyclone Michaung, which struck Andhra Pradesh on December 5, caused significant damage to the state's agricultural sector, particularly affecting farmers who contribute around a fifth of India's tobacco production. India stands as the world's second-largest producer of tobacco, accounting for 9% of the global total.

The country annually produces about 800 million kilograms of tobacco, with Gujarat being the leading contributor (45% of total production), followed by Andhra Pradesh and Uttar Pradesh.

In the first eight months (April-November 2023) of the current fiscal year, India exported tobacco valued at $981.05 million. Key export destinations include Belgium, the UAE, Indonesia, Russia, Korea, the US, Yemen, Egypt, Singapore, the Netherlands, the Philippines, Turkey, and Nepal.

The tobacco industry employs approximately 36 million people, encompassing six million farmers, 20 million farm laborers, and an additional 10 million people engaged in processing, manufacturing, and exports.

Furthermore, the agriculture ministry advocates for crop diversification programs (CDP) as part of the Rashtriya Krishi Vikas Yojana - Remunerative Approaches for Agriculture and Allied Sectors Rejuvenation. These programs encourage tobacco farmers, including those in Andhra Pradesh, to transition to alternative crops

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