“PM Sensitive to Farmers’ Problems, Government Will Protect Their Interests” – Piyush Goyal

GG News Bureau
New Delhi, 1st July.  Piyush Goyal, the Union Minister for Commerce and Industry, held a meeting with tobacco farmers, manufacturers, and exporters at Novotel, Shamshabad, Hyderabad on 29 June 2024.

Addressing the gathering, Goyal expressed satisfaction with the record high price realization for flue-cured Virginia (FCV) tobacco and the record high export performance of Indian tobacco for FY 2023-24. As of 27 June 2024, farmers have realized an average price of Rs. 269.91 per kg for the sale of 112.35 million kg of FCV tobacco in electronic auctions conducted by the Tobacco Board. The export value of unmanufactured tobacco and tobacco products reached Rs. 12,005.80 crore (1449.50 million USD), marking an increase of 11.3% in rupee terms and 19.5% in dollar terms.

During the meeting, participants thanked the Hon’ble Minister for the opportunity to voice their concerns, including issues such as labor shortages, lack of assistance for farm mechanization, high costs of sulphate of potash (SOP) fertilizer, penalties on excess tobacco production, and increased fuel costs for tobacco barns. Traders highlighted that tobacco exporters are not covered under any export incentive schemes and requested inclusion under the RoDTEP scheme. They also sought government intervention to curtail unauthorized production and use of chewing tobacco and to address the rise in illicit cigarette sales.

Minister Goyal noted the problems faced by the tobacco farmers and industry, assuring them that the Hon’ble Prime Minister is very sensitive to the farmers’ issues and that the government will take all necessary steps to protect their interests.

He committed to addressing the issues of the tobacco farmers and industry through several measures:

Staff Shortage in Tobacco Board: Immediate action will be taken to address staff shortages in the Tobacco Board.

Penalty Waiver: Efforts will be made to waive the penalty on excess tobacco produced by farmers this year.

Registration Validity Extension: The validity of registration will be increased from 1 year to 3 years, starting from the upcoming season. Both digital and offline registration options will be available for farmers.

Interest Subvention Facility: Farmers are urged to avail of the interest subvention facility under the Agriculture Infrastructure Fund, which offers a 3% interest subsidy for developing the latest infrastructure in tobacco production.

Education Loans: The Tobacco Board is advised to arrange interest-free higher education loans for the children of tobacco farmers, with a repayment period of 7 years.

Financial Assistance During Natural Calamities: The Tobacco Board is advised to increase financial assistance to farmers during natural calamities.

Additionally, the Director of ICAR-CTRI was advised to develop mechanization in tobacco cultivation, find suitable alternatives for SOP fertilizer, and create plant protection chemicals to avoid objectionable residues in tobacco to encourage exports. The development of barns using solar and electricity for curing tobacco was also recommended.

The meeting saw participation from Smt. D. Purandeshwari, M.P., Rajamahendravaram; Sri. Rajesh Agrawal, Addl. Secretary, DoC; Sri. Ch. Yashwanth Kumar, Chairman, Tobacco Board; and Dr. Sridhar Babu Addanki, Executive Director, Tobacco Board.