Phasing out flue-cured growing in India would be a costly business

The Indian government has yet to approve a proposal recommended by the Tobacco Board under which flue-cured production would be phased out on 4,500 acres, according to a story in the Hindu.

A board official was quoted as saying that the Ministry of Health would need to announce a financial package for funding the pilot project since it was the key agency in respect of the implementation of the World Health Organization’s Framework Convention on Tobacco Control.

The official said the board was promoting alternative crops but that it was not possible to phase out tobacco cultivation without the support of the government.

The board has responsibility only for flue-cured production.

Under the proposal, in Andhra Pradesh and Karnataka, where the pilot scheme would be implemented, 2,500 tobacco farmers affected by the phase-out would be given a one-time compensation of between Rs250,000 and Rs450,000 each for surrendering their licenses and barns to the board.

In all, the proposal requires the government to allocate Rs1.25 billion for compensating the farmers.