Andhra Pradesh tobacco growers to receive interest-free working-capital loans
The approved intervention offers ₹50,000 per barn; the government estimates coverage of about 44,000 growers.
The government has approved a one-time interest-free working-capital loan of ₹50,000 per barn for growers of Flue-Cured Virginia tobacco in Andhra Pradesh, the Commerce Ministry said on 25 September.
The proposed intervention is valued at roughly ₹220 crore and is expected to cover about 44,000 growers. The ministry says assistance is proposed through direct benefit transfer. It is a loan measure, and should not be confused with a grant or a universal payment to farmers.
The announcement comes during auctions for the 2025–26 crop, which began on 25 March. About 100 million kilograms had been auctioned at the time of the statement, according to the ministry. It cited changing international demand and trade conditions as the context for the intervention.
The stated purpose is to help growers manage immediate cash needs, repay institutional borrowing and buy inputs for the next season. The release confirms approval and intended coverage, but does not provide evidence that every eligible grower has already received the money. Readers should consult the implementing authority for application and repayment details.