Union Commerce and Industry Minister Piyush Goyal has expressed his satisfaction over the record high export performance for the Indian tobacco for FY 2023-24 and assured the farmers that the government was taking very measures for their benefits.

He also said that the Prime Minister is very sensitive towards the farmers’ problems and the government will do everything to protect ryots’ interests.

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His remarks came at a meeting with tobacco farmers, manufacturer’s exporters at Novotel, Shamshabad, Hyderabad on June 29, the details of which were shared by the Ministry on Sunday.

Addressing the gathering, he expressed satisfaction for realisation of record high price for the flue cured Virginia tobacco by the farmers as well as record high export performance for the Indian tobacco for FY 2023-24. He shared that as on June 27, an average price of Rs 269.91 per kg has been realized by the farmers for the sale of 112.35 million kg of FCV tobacco in electronic auctions conducted by the Tobacco Board.

He also informed that the export value of unmanufactured tobacco and its products surpassed all the earlier records at Rs 120,05.80 crore (USD 1449.50 million). This is higher by 11.3 per cent in rupee terms and 19.5 per cent in dollar terms.

Minister Goyal assured to address the issues of the tobacco farmers and industry by taking up various measures.

He promised to address the issue of staff shortage in the Tobacco board immediately. All efforts will be made to waive the penalty on excess tobacco produced by the farmers this year, he assured.

The period of validity of registration will be increased from one year to a period of three years, he said. This will be available for all the tobacco farmers from the upcoming season.

The government will also encourage all farmers to go digital for the registration. This will not be mandatory as offline registration is also available for the benefit of small farmers.

He urged the farmer fraternity to avail the interest subvention facility under Agriculture Infrastructure Fund through which the Agricultural Ministry can give 3 per cent interest subsidy for development of latest infrastructure in tobacco production.

He also advised the Tobacco Board to arrange interest free higher education loans to the children of tobacco farmers with a repayment period of 7 years. Further, he advised the Tobacco Board to increase the financial assistance to farmers during natural calamities.

It was advised the Director, ICAR-CTRI to develop mechanisation in tobacco cultivation, suitable alternative for SOP fertilizer, 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.

At the meeting, the participants requested the government help in curtailing unauthorised production and use of chewing tobacco in India due to which there was a huge loss to the government exchequer. They also informed that there was an increase in illicit cigarette sales.