Government Approves One-Time Interest-Free Loan of ₹50,000 per Barn for FCV Tobacco Growers in Andhra Pradesh
The Government of India has approved an interest-free loan of ₹50,000 per barn for FCV tobacco growers in Andhra Pradesh to offer timely financial relief. The initiative covers around 44,000 growers with a total financial support of about ₹220 crore disbursed via Direct Benefit Transfer (DBT).
Why It Matters
This is relevant for candidates studying government economic schemes, agricultural finance, and support initiatives for specific crop growers like FCV tobacco in competitive exams.
In Simple Words
The government approved a one-time, interest-free loan of ₹50,000 per barn for FCV tobacco growers in Andhra Pradesh to help them manage changing global market conditions. Auctions for the 2025-26 crop season started on 25 March 2026.
This working capital assistance covers about 44,000 farmers with a total cost of around ₹220 crore, provided directly through DBT. It helps growers meet household needs, repay loans, and buy inputs for the next crop season.
Key Points
- Approved a one-time, interest-free loan of ₹50,000 per barn for FCV tobacco growers in Andhra Pradesh.
- Scheme name: Interest-Free Working Capital Assistance Scheme.
- Auctions for the 2025-26 crop season in Andhra Pradesh began on 25 March 2026.
- Approximately 100 million kg of FCV tobacco has been auctioned so far.
- FCV tobacco is mainly grown in Andhra Pradesh and Karnataka.
- Covers approximately 44,000 growers with a financial intervention of about ₹220 crore.
- Assistance is provided directly to farmers through DBT.
- Aims to provide liquidity, help repay institutional loans, and reduce private borrowing.
Exam Angle
A. ₹50,000 per barn
Source: Press Information Bureau