Government of India permits sale of FCV Tobacco on Tobacco Boards auction platform and waives off penalty on sale of excess production of registered growers and unauthorized production of unregistered growers in Karnataka

Flue Cured Virginia (FCV) Tobacco is mainly produced in India in 2 states, Andhra Pradesh and Karnataka. Currently crop season is going in Andhra Pradesh, which has 42,915 FCV tobacco growers and auctions are going on in Karnataka which has 39,552 FCV tobacco growers.

From 3rd-5th December 2023, MICHAUNG cyclone had caused heavy rains in Andhra Pradesh.  The FCV tobacco crop grown in Andhra Pradesh covering Eluru, East Godavari, Kakinada, Prakasam, Nellore, Bapatla, Palnadu and Guntur districts has been severely affected due to these cyclonic rains. The estimated area planted in the current crop season in Andhra Pradesh was 75,355 ha. and 14,730 ha. area i.e. around 20% of the total planted area has been affected due to these heavy rains. The FCV tobacco crop has been impacted by washing out of crop, drowning of standing crop, water logging and resultant wilting of standing crop.

In view of the hardships faced by FCV Tobacco growers in Andhra Pradesh, the Government of India has approved Rs 10,000/- interest free loan from the Grower Welfare Fund of Tobacco Board to the grower members of the fund, whose crops were damaged due to MICHAUNG Cyclonic rains in Andhra Pradesh. This is a one-time interest free loan for Andhra Pradesh Crop Season 2023-24 only. This interest free loan amount will be recovered from the respective tobacco growers auction sale proceeds of 2023-24 Andhra Pradesh crop season.

Currently, auctions of FCV Tobacco are going on in the Karnataka. Till date, around 85.12 M. kg FCV tobacco has already been marketed by the Board through its e-auction platforms in Karnataka. There is a jump of 12.49% in the average price received by tobacco growers i.e. from Rs 228.01/- per kg last year to Rs 256.48/- per kg in the current year.

In Karnataka, the State Government of Karnataka has declared drought in all except 2 FCV Tobacco growing taluks. This has affected the livelihood of FCV Tobacco growers. Due to this, the Government of India has decided to permit the sale of FCV Tobacco on Tobacco Boards auction platform after waiving off the penalty on the sale of excess production of registered growers and unauthorized production of unregistered growers for Karnataka Crop Season 2023-24 only.

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Interest-free loan and penalty waiver enable tobacco growers to sell damaged or excess FCV crop via auction platform. Approval of a one-time interest-free loan from the Grower Welfare Fund for Andhra Pradesh FCV tobacco growers affected by cyclonic rains, recoverable from their 2023-24 auction sale proceeds; and a permissive authorization for sale on the Tobacco Board auction platform for Karnataka growers with a waiver of penalties on excess and unauthorized production for the 2023-24 crop season only.