Govt approves one-time interest-free loan of Rs 50,000 per barn for FCV tobacco growers in Andhra Pradesh

The assistance, under the Interest-Free Working Capital Assistance Scheme, is expected to support around 44,000 growers, involving a financial intervention of about Rs 220 crore. The assistance is proposed to be provided directly to farmers through Direct Benefit Transfer (DBT), the ministry said.

The government said the intervention comes as the global tobacco market faces changing demand patterns, geopolitical developments and evolving international trade dynamics, which have influenced procurement and marketing conditions.

Auctions for the 2025-26 crop season in Andhra Pradesh commenced on March 25, 2026, with around 100 million kg of FCV tobacco auctioned so far, according to the ministry. FCV tobacco is predominantly cultivated in Andhra Pradesh and Karnataka.

The proposed interest-free assistance is intended to help growers meet household requirements, repay institutional loans and purchase inputs for the ensuing crop season, while reducing their dependence on private borrowing, the government said.

The ministry said it is also undertaking coordinated measures to facilitate procurement, enhance market participation and promote exports of FCV tobacco.

The government is engaging continuously with exporters, buyers, growers and other stakeholders to facilitate smooth marketing of the crop and strengthen the FCV tobacco sector, it said.

The one-time financial intervention is aimed at addressing the immediate liquidity requirements of growers while supporting their ability to prepare for the next crop season, according to the ministry.

The government said the initiative reaffirms its commitment to the welfare of FCV tobacco growers by providing timely financial assistance and supporting their working capital requirements. (ANI)