PM sensitive towards farmers' issues, says Union Commerce Min Piyush Goyal

Hyderabad: Union Minister for Commerce and Industry, Piyush Goyal, expressed his satisfaction with the realisation of record-high prices for the flue-cured Virginia tobacco by the farmers, as well as record high export performance for the Indian tobacco for FY 2023-24.

Piyush Goyal and Union Minister of Coal and Mines G Kishan Reddy addressed a meeting with tobacco farmers, manufacturers and exporters on Sunday.

Addressing the gathering, he shared that as of June 27, an average price of Rs. 269.91 per kg was realised by the farmers for the sale of 112.35 million kg of FCV tobacco in electronic auctions conducted by the Tobacco Board.

Also, the export value of un-manufactured tobacco and tobacco products surpassed all the earlier records at Rs. 12,005.80 crore. This is higher by 11.3 per cent in rupee terms and 19.5 per cent in dollar terms.

The participants informed the problems being faced by tobacco farmers in tobacco production, such as shortage of labour, lack of assistance for farm mechanisation, higher cost of sulphate of potash (SOP) fertiliser, penalty on excess tobacco production, increased fuel cost for tobacco barns and sought necessary technological/financial assistance from the government. Traders submitted that tobacco exporters are not covered under any scheme providing export incentives and requested to extend support to tobacco exporters by including them under the RoDTEP scheme. They also requested the government's help in curtailing the unauthorised production and use of chewing tobacco in India, causing huge losses to the Government exchequer. They also informed that there is an increase in illicit cigarette sales.

The Minister noted the problems faced by the tobacco farmers and industry and said that the PM is very sensitive towards the farmers’ problems, and the government will do everything to protect the farmer's interests. He has assured to address the issues of the tobacco farmers and industry by taking up necessary measures. He promised to address staff shortage in the Tobacco board, to waive the penalty on excess tobacco produced by the farmers this year, besides increasing the registration period of validity from 1 to 3 years. This will be available for all the tobacco farmers in the upcoming season. Besides, the government will also encourage all farmers to go digital for registration. This will not be mandatory as offline registration is also available for the benefit of small farmers.

He urged the farmers to avail of the interest subvention facility under the Agriculture Infrastructure Fund through which the Agricultural Ministry can give a 3 per cent interest subsidy for the development of the latest infrastructure in tobacco production. He asked the Tobacco Board to arrange interest-free higher education loans to the children of tobacco farmers with a repayment period of seven years and to increase the financial assistance to farmers during natural calamities.

It was advised that the director, ICAR-CTRI develop mechanisation in tobacco cultivation, suitable alternative for SOP fertiliser, suitable plant protection chemicals to avoid objectionable residues in tobacco to encourage exports, and to develop barns that operate by using solar and electricity for curing tobacco.

Kishan Reddy said that a constructive platform like this one is needed between the government and the industrialists and such efforts would help take all stakeholders along to pave for a better future for the country. He said that sharing new ideas and discussing the challenges the country faces ahead is important to make the country a developed one by 2047.