Government approves one-time interest-free loan of Rs 50,000 per barn for FCV tobacco growers in Andhra Pradesh
The Government of India has approved a one-time, interest-free loan of Rs 50,000 per barn for Flue-Cured Virginia (FCV) tobacco growers in Andhra Pradesh under the Interest-Free Working Capital...
The Government of India has approved a one-time, interest-free loan of Rs 50,000 per barn for Flue-Cured Virginia (FCV) tobacco growers in Andhra Pradesh under the Interest-Free Working Capital Assistance Scheme.
The measure is aimed at providing timely financial support to growers amid changing global market conditions.
Auctions for the 2025-26 crop season in Andhra Pradesh began on March 25, 2026, with around 100 million kg of FCV tobacco auctioned so far. FCV tobacco is predominantly cultivated in Andhra Pradesh and Karnataka.
The global tobacco market has witnessed changing demand patterns, geopolitical developments and evolving international trade dynamics, affecting procurement and marketing conditions.
The government is undertaking coordinated measures to facilitate procurement, increase market participation and promote exports. It is also engaging continuously with exporters, buyers, growers and other stakeholders to facilitate the smooth marketing of the crop and strengthen the FCV tobacco sector.
Under the one-time intervention, interest-free working capital assistance of Rs 50,000 per barn has been approved for FCV tobacco growers. The measure is expected to cover around 44,000 growers, involving a financial outlay of approximately Rs 220 crore.
The assistance will be provided directly to farmers through Direct Benefit Transfer (DBT).
The financial support is intended to provide immediate liquidity to growers, helping them meet household expenses, repay institutional loans and purchase inputs for the upcoming crop season. It is also expected to reduce growers’ dependence on private borrowing.
The initiative is aimed at supporting the working capital requirements of FCV tobacco growers and providing timely financial assistance amid prevailing market conditions.
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