New Delhi, Sep 25 The centre on Friday said it has approved a one-time, interest-free loan of Rs 50,000 per barn for Flue-Cured Virginia tobacco growers of Andhra Pradesh.
The proposal covers about 44,000 growers with a financial intervention of about Rs 220 crore, the Commerce Ministry said in a statement.
The assistance is proposed to be provided directly to farmers through direct benefit transfer (DBT).
“As part of the proposed one-time intervention, interest-free working capital assistance of Rs 50,000 per barn has been approved for FCV tobacco growers,” it said.
The 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.
Auctions for the 2025–26 crop season in Andhra Pradesh commenced on March 25, 2026, with about 100 million kg of FCV tobacco auctioned so far.
This tobacco is predominantly cultivated in Andhra Pradesh and Karnataka.
It added that 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,” it said.
Meanwhile, the Centre has also permitted the sale of excess ‘Flue-Cured Virginia tobacco’ of registered and unregistered growers in Andhra Pradesh for the 2025-26 crop season at the auction platforms authorised by the Tobacco Board.
According to a Commerce Ministry notification, the Centre has relaxed the operation of a provision of the Tobacco Board Act in Andhra Pradesh “for the auctions during the crop season 2025-2026, and permits the sale of excess Flue-Cured Virginia tobacco of the registered growers and unauthorised Flue-Cured Virginia tobacco of the unregistered growers at the auction platforms authorised by the Tobacco Board”.
The financial assistance was approved under the Interest-Free Working Capital Assistance Scheme to provide timely financial support to growers amid evolving global market conditions.
(PTI News)
