With ‘zero penalty’, farmers start bringing excess FCV tobacco for auction

Tobacco Board Chairman Yashwant Kumar Chidipothu inspecting the auction procedure at a platform.

As many as 34,089 tobacco farmers will benefit by about ₹111 crore with the decision of the Central government not to impose penalty on the sale of excess Flue Cured Virginia (FCV) tobacco produced by the registered growers on the auction platforms in Andhra Pradesh for 2023-24 crop season.

“The Central government has taken the decision after considering the loss due to cyclonic rains,” said Tobacco Board Chairman Yashwanth Kumar Chidipothu.

He said they had opened the auction platforms across the State as soon as the Centre published a gazette to this effect.

The farmers, who had till recently been waiting for the Union government’s decision, were bringing the excess tobacco to the auction platforms.

Mr. Kumar said they would collect nominal applicable charges at the auction platforms. He said that due to cyclonic storms, the crop damage was estimated in 15,028 hectares in all soil regions in Andhra Pradesh.

Mr. Kumar said Union Minister of Commerce and Industry Piyush Goyal considered allowing sale of excess FCV tobacco produced by the farmers on priority basis as soon as the NDA government formed.

It is estimated that auction of the entire tobacco may be complete by the end of September.