Centre, Andhra Pradesh announce relief package for tobacco farmers
The Indian government and the Andhra Pradesh state government have announced a relief package for tobacco farmers, including interest-free loans and price support. These measures aim to mitigate financial hardship caused by excess production and market fluctuations.
Why it matters
This highlights government intervention in agricultural markets to support farmer livelihoods during economic downturns.
Union Minister of State for Communications and Rural Development Pemmasani Chandra Sekhar on Sunday announced a relief package comprising credit and price support for tobacco farmers, following consultations involving the Tobacco Board, buyers and exporters. The measures will come into effect from August 3.
Addressing the media in New Delhi, Mr. Chandra Sekhar said the Union government would provide interest-free loans of ₹50,000 each to about 45,000 tobacco farmers. The loans, repayable over two years, would involve an outlay of around ₹250 crore.
He said the Andhra Pradesh government would provide an incentive of ₹10 per kg for low and off-style varieties of tobacco, with the amount to be credited directly to the beneficiaries’ bank accounts.
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