The Hungarian Agriculture Ministry said on Friday that it would allocate HUF5 billion (US$17.2 million) in subsidies to tobacco growers during the next two years, according to a Hungary Around the Clock story relayed by the TMA.
The subsidies are part of an effort being made to sustain nearly 20,000 jobs in the sector, especially in the counties of Szabolcs-Szatmár-Bereg and Bács-Kiskun.
The ministry plans to disburse HUF3.5 billion (US$12 million) this year and HUF1.5 billion (US$5.2 million) during 2016.
Direct EU subsidies for the production of tobacco have been phased out.
The EU Commission is on record as saying that it cannot pursue policies that encourage leaf tobacco production, while at the same time aiming to protect citizens from the hazardous effects of tobacco consumption.