New Delhi: In an effort to provide timely financial support to farmers amid evolving global market conditions, the Central government on Friday approved a one-time, interest-free loan of Rs 50,000 per barn for FCV tobacco growers in Andhra Pradesh.
As part of the proposed one-time intervention under the Interest-Free Working Capital Assistance Scheme, interest-free working capital assistance of Rs 50,000 per barn has been approved for FCV tobacco growers.
The proposal covers approximately 44,000 growers with a financial intervention of about Rs 220 crore. The assistance is proposed to be provided directly to farmers through DBT, according to the Commerce Ministry.
The Flue-cured Virginia (FCV) tobacco, grown in black soils and southern light soils of Andhra Pradesh, is known for its neutral colour and filler character in the export market with low nicotine.
“Auctions for the 2025–26 crop season in Andhra Pradesh commenced on March 25, 2026, with approximately 100 million kg of Flue-Cured Virginia (FCV) tobacco auctioned so far. FCV tobacco is predominantly cultivated in Andhra Pradesh and Karnataka,” the ministry said in a statement.
The proposed assistance is intended to provide immediate liquidity to growers, enable them to meet household requirements and repay institutional loans, purchase inputs for the ensuing crop season, and reduce dependence on private borrowing.
The initiative reaffirms the government’s commitment to the welfare of FCV tobacco growers by providing timely financial assistance and supporting their working capital needs.
According to the ministry, the global tobacco market has witnessed changing demand patterns, geopolitical developments and evolving international trade dynamics, influencing procurement and marketing conditions.
The government is also undertaking coordinated measures to facilitate procurement, enhance market participation, and promote exports.
Continuous engagement with exporters, buyers, growers and other stakeholders is being undertaken to facilitate smooth marketing of the crop and strengthen the FCV tobacco sector, said the ministry.
(IANS)
