The Government has approved a one-time, interest-free loan of 50,000 rupees per barn for Flue-Cured Virginia (FCV) tobacco growers in Andhra Pradesh under the Interest-Free Working Capital Assistance Scheme. The global tobacco market has witnessed changing demand patterns, geopolitical developments and evolving international trade dynamics, influencing procurement and marketing conditions.

The Ministry of Commerce and Industry said that the approval will provide timely financial support to tobacco growers amid evolving global market conditions. FCV tobacco is predominantly cultivated in Andhra Pradesh and Karnataka. The proposal covers approximately 44,000 growers with a financial intervention of about 220 crore rupees. The Ministry said that assistance is proposed to be provided directly to farmers through DBT. It said that 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.

Auctions for the 2025-26 crop season in Andhra Pradesh commenced on the 25th of March, with approximately 100 million kilogram of FCV tobacco auctioned so far.