Interest-free loan proposed for cyclone-hit tobacco farmers in Andhra

The government is working on a proposal to give interest-free loans to tobacco growers in Andhra Pradesh, potentially benefiting 15,000 cyclone-hit farmers, with implications for global supplies.

The interest-free loans will be for a tenure of six months and used for re-planting tobacco plants. The proposal, forwarded by the Tobacco Board of India, is being considered by the commerce ministry, two government officials said.

Andhra Pradesh accounts for a fifth of India's tobacco output, and India is the world's second largest tobacco producer after China, accounting for 9% of total global production.

Michaung, which hit the coast of Andhra Pradesh on 5 December, caused huge losses to farmers in the state.

Queries sent to ministries of commerce and agriculture, secretaries of commerce and agriculture, and Tobacco Board executive director remained unanswered at press time.