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The Union Ministry of Commerce has reduced the penalties levied on registered and unregistered growers of FCV (Flue Cured Virginia) tobacco.
The Ministry has reduced the penalties on registered farmers to 7.5 per cent from 15 per cent and on unregistered farmers to 15 per cent from 22.5 per cent.
At the beginning of the each cropping season, the Tobacco Board specifies the quantity to be produced by the farmers. Whatever quantity produced over and above this will not be allowed to be traded on the auction platforms.
The board levies penalties on such excess produce to discourage the farmers from growing additional tobacco. The proceeds would go to Tobacco Fund maintained by the board.
With the cost of cultivation going up significantly, the Ministry has decided to reduce the penalties to support the farmers financially.
The move will benefit 40,000 farmers in Andhra Pradesh in the ongoing auctions, Mr G. Kamalavaradhana Rao, Chairman of Tobacco Board, has said.
>kurmanath.kanchi@thehindu.co.in
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