Skip to main content

Relief Package to boost Tobacco Exports

The recent devastation caused by the Michaung cyclone in December 2023 severely impacted the tobacco crop of Andhra Pradesh and Karnataka. The heavy rains led to significant damage, including crop washing out, drowning, waterlogging, and wilting. Approximately 20% of the total planted area in affected regions suffered losses, posing challenges to tobacco farmers.


In response to the crisis, the Central government has announced a relief package aimed at boosting exports and alleviating the financial burden on tobacco farmers in Andhra Pradesh and Karnataka.

The relief measures include:

1.Interest-Free Loans in Andhra Pradesh:  The Government of India has approved interest-free loans of Rs. 10,000 from the Grower Welfare Fund of the Tobacco Board for affected grower members. This financial assistance is intended to support farmers whose crops were damaged due to the cyclonic rains. This one-time loan is specifically designated for the Andhra Pradesh Crop Season 2023-24 and will be recovered from the auction sale proceeds of the corresponding crop season.

2.Waiving of Penalties in Karnataka: n Karnataka, the Central government has decided to permit the sale of Tobacco on the Tobacco Board's auction platform. This decision comes with the waiver of penalties on the sale of excess production by registered growers and unauthorized production by unregistered growers specifically for the Karnataka Crop Season 2023-24.

Present Scenario and Export Demand: 

According to Mr. Raghunath Babu, Former Chairman of the Tobacco Board, Andhra Pradesh currently contributes to 200 million Kg of tobacco production, with approximately 40% of this used for domestic purposes. Besides, there is also significant export demand, particularly from European countries. The export demand has been further fueled by a decrease in production in Zimbabwe and Brazil attributed to climate change.

Price Trends: 

Presently, the price of tobacco for Best Quality stands at Rs. 280/kg, while Medium Quality tobacco is priced at Rs. 250/kg. These prices reflect the current market conditions and the quality differentials in the tobacco produce.

It is hoped that with this assistance, India will increase its market share of Tobacco in World market.


#ITC #Tobacco #Climate



Labels:

Comments

Post a Comment

Popular posts from this blog

Technology - Advising Farmers and Crop Yield Assesment

Food security in the light of climate change is a global imperative. In developing nations, the problem is exacerbated by variable weather, lack of reliable extension services to optimize yield and fair market access. In India, most farmers do not have access to weather advisory forecasts that are hyper local to their field and timely in nature. As all farming activities are heavily dependent on weather, decisions on application of fertilizers and pesticide, irrigation, and even plucking of fruits & vegetables and harvesting cannot be taken efficiently. In addition, significant crop losses, that are entirely preventable, accrue through adverse weather events. Crop advisory services, where available, are generic and not pegged to a farmer's seed variety, date of sowing, and growing conditions and hence do not dispense timely, actionable advice, directly relevant to a farmer. Likewise, market trends pertinent to their particular crop and location ...
42 comments
Read more

Rice: Food or Fuel ?

Addressing Surplus Rice Stocks The FCI’s warehouses are currently holding rice stocks that are nearly four times the required buffer stock. The high reserve price previously deterred purchases by ethanol distilleries and state agencies, which has exacerbated the surplus. By lowering the price, the government intends to: Alleviate excess stocks. Encourage more efficient distribution of rice to various stakeholders. Enhance the affordability of raw materials for ethanol production. Stock & Procurement As of Nov 2024, Rice stock is 440.76 LMT, against the buffer norm of 102.50 LMT. Reduction in Reserve Price of Rice under OMSS: A Strategic Step Towards Food Security and Sustainable Energy In a significant move to address the surplus rice stocks and promote sustainable energy, the Indian government has announced a reduction in the reserve price of rice held by the Food Corporation of India (FCI) under the Open Market Sale Scheme (OMSS). The reserve price has been slashed ...
Post a Comment
Read more

Government Measures to tame soaring wheat prices

In recent years, wheat prices have soared to unprecedented levels, prompting the government to implement several measures to control the surge. The government had been attempting to initiate the Open Market Sale Scheme (OMSS) since August; however, it was only successfully launched in December. In the first tender held on December 11, 100,000 tonnes of wheat were offered, out of which 99,815 tonnes were sold. Another tender held on the 26th, an offer of 100,000 tons of wheat was made, out of which 99,465 tons were sold, where another 100,000 tonnes of wheat will be offered on January 1st. The quantity of wheat to be sold under the OMSS is likely to increase in January. Last year, 3.50 lakh tonnes of wheat were sold in the second week of December, whereas this year, not even half of that quantity has been sold so far. More risk-taking traders have remained in the market for a few more weeks, while cautious players have exited at every price rise. Considering the anticipated price in...
Post a Comment
Read more