Centre permits sale of surplus tobacco, says Mysuru MP
GS3Economy · S&T · Environment · Security· MSP, procurement, PDS & food security· Prelims·
Why in news
The Union government issued a notification permitting registered tobacco growers in Mysuru to sell surplus Flue Cured Virginia (FCV) tobacco at authorized auction platforms.
Background
The notification allows registered and licensed tobacco growers to sell surplus FCV tobacco. Growers must contribute ₹1 per kilogram and 5% of sale proceeds to the Tobacco Fund for the 2025-26 season.
Facts for Prelims
- BodyTobacco Board: The body authorized to oversee tobacco auction platforms and grower registrations.
- FactTobacco Fund contribution: ₹1 per kilogram and 5% of sale proceeds for the 2025-26 season.
- FactFCV: Flue Cured Virginia tobacco is the specific variety permitted for sale under this notification.
For Mains
Q. Discuss the significance of auction-based platforms and fund contributions in stabilizing the livelihoods of tobacco growers in India.
Dimensions to cover in your answer
- Market liquidity: Auction platforms providing immediate price discovery for surplus crops
- Fiscal mechanism: Use of grower contributions to sustain the Tobacco Fund for industry support
Keywords: Price discovery · Market intervention · Livelihood stabilization · Auction platforms
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