Union offers interest free ₹50,000 loans to Andhra Pradesh farmers
Tobacco farmers in Andhra Pradesh have been hit hard by falling prices and tough market conditions.
To help out, the Union government is offering interest-free loans of 50,000 rupees each to about 45,000 farmers (that's around 250 crore rupees total).
Plus, there's a new 10 rupees per kg incentive from the state government for low and off-style tobacco varieties to give farmers a bit more breathing room.
Exporters set minimum tobacco prices
Exporters have agreed to pay at least 230 rupees per kg for bright tobacco, 190 rupees per kg for medium, 130 rupees per kg for off-style, and 110 rupees per kg for low variety, so farmers know what to expect.
With oversupply and global conflicts causing price drops (production overshot targets by about 90 million to 100 million kg!), the Tobacco Board is speeding up auctions to clear at least two million kg daily and help stabilize things.