The government has set up a Rs 5,000-crore (EUR 776 million) fund to finance tobacco farmers diversifying into other crops such as oilseeds, soybeans and chillies, reports the Economic Times.
The fund will be used to provide INR 5 lakh (EUR 7,764) per farm to gradually phase out tobacco cultivation. The move follows the government’s plan to halve tobacco production by 2015. The government aims to target at least seven million tobacco growers to move away from the crop.
Labourers employed in tobacco production will also be given financial support for rehabilitation. Kovur (Andhra Pradesh) and Shimoga (Karnataka) are the two villages identified by the government to kickstart the rehab programme.
Officials said the country’s action is in line with methods adopted by Brazil and the US to control tobacco production. The government is of the view that farmers could earn similar returns from alternative crops over a period of time. (pi)