Tobacco traders have requested the government to include the sector in the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme so that they can avail export benefits.
In a meeting with commerce and industry minister Piyush Goyal in Hyderabad on Saturday, they submitted that tobacco exporters are not covered under any scheme that provides export incentives. India’s tobacco exports in 2023-24 stood at $1.44 billion. The RoDTEP scheme introduced in 2021 refunds taxes and duties on exported products.
At the meeting, the minister announced that the validity of registration of tobacco growers and nursery operators will be increased to three years from the present one year and will be available for all tobacco farmers from the upcoming season.
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The minister asked farmers to avail the interest subvention facility under Agriculture Infrastructure Fund through which the agricultural ministry can give 3% 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. He also advised the Tobacco Board to increase the financial assistance to farmers during natural calamities.
The participants also flagged the problems being faced by tobacco farmers in tobacco production such as shortage of labour, lack of assistance for farm mechanisation, higher cost of sulphate of potash fertiliser, penalty on excess tobacco production, increased fuel cost for tobacco barns and sought necessary technological/financial assistance from the government.
Goyal said that all efforts will be made to waive the penalty on excess tobacco produced by the farmers this year.
From: financialexpress
Financial News
