Tobacco farmers urge government to include the sector in the RoDTEP duty drawback programme | News

Tobacco exporters have asked the government to extend the RoDTEP duty drawback program to the sector to increase outbound shipments.

During a meeting with Commerce and Industry Minister Piyush Goyal in Hyderabad on June 29, traders said tobacco exporters were not covered by any scheme providing export incentives.

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“They asked to extend support to exporters of tobacco products by including them in the RoDTEP program,” the ministry said in a statement.

They also sought the government’s help in curbing unauthorised production and use of chewing tobacco in India, which is causing huge losses to the government, it added.

They also reported an increase in illegal cigarette sales.

The Remission of Duties and Taxes on Exported Products Scheme (RoDTEP) provides for the refund of taxes, duties and levies incurred by exporters in the production and distribution of goods which are not refundable under any other mechanism at the central, state or local levels.

At the meeting, Goyal informed that the export value of raw tobacco and tobacco products has crossed all records at Rs 12,005.80 crore (US$ 1.5 billion).

Participants also highlighted the problems faced by tobacco growers in production, such as labor shortages, lack of support for farm mechanization, higher cost of potassium sulfate fertilizer (SOP), fines for tobacco overproduction, increased fuel costs for tobacco barns, and asked the government for the necessary technological and financial support.

He assured that he would deal with the issues of farmers and the tobacco industry.

Goyal said all efforts will be made to waive penalty on excess tobacco produced by farmers this year. He added that the validity period of registration will be extended from one year to three years.

Already in the upcoming season it will be available to all tobacco farmers.