Centre approves ₹50000 interest-free loan per barn for FCV tobacco growers in Andhra Pradesh
The one-time working capital assistance is expected to cover around 44,000 FCV tobacco growers in Andhra Pradesh, involving a financial intervention of about ₹220 crore through DBT.
Auctions for the 2025–26 FCV tobacco crop in Andhra Pradesh began on March 25, 2026.
NEW DELHI: The Union government on Friday approved a one-time, interest-free working capital assistance of ₹50,000 per barn for Flue-Cured Virginia (FCV) tobacco growers in Andhra Pradesh under the Interest-Free Working Capital Assistance Scheme. The proposal is expected to cover approximately 44,000 growers, involving a financial intervention of about ₹220 crore.
The assistance is proposed to be transferred directly to farmers through Direct Benefit Transfer (DBT). The measure comes amid changing global demand patterns, geopolitical developments and evolving international trade conditions affecting tobacco procurement and marketing.
About 100 million kg auctioned so far
Auctions for the 2025–26 FCV tobacco crop in Andhra Pradesh began on March 25, 2026. Approximately 100 million kg of FCV tobacco has been auctioned so far.
FCV tobacco is predominantly cultivated in Andhra Pradesh and Karnataka.
The government is also undertaking measures to facilitate procurement, enhance market participation and promote exports, while engaging with exporters, buyers, growers and other stakeholders to support the marketing of the crop.
Assistance aimed at working capital needs
According to the government, the one-time assistance is intended to provide immediate liquidity to growers, enabling them to meet household requirements, repay institutional loans and purchase inputs for the ensuing crop season.
The assistance is also intended to reduce growers’ dependence on private borrowing and support their working capital requirements amid changing market conditions, the Ministry of Commerce & Industry said in a statement.
