Now Reading: Centre approves Rs 50,000 loan per barn for Andhra tobacco farmers
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Centre approves Rs 50,000 loan per barn for Andhra tobacco farmers
The Commerce Ministry has approved a one-time interest-free loan of Rs 50,000 per barn for Flue-Cured Virginia tobacco growers in Andhra Pradesh. The proposal covers about 44,000 growers, with total financial intervention…
The Commerce Ministry has approved a one-time interest-free loan of Rs 50,000 per barn for Flue-Cured Virginia tobacco growers in Andhra Pradesh. The proposal covers about 44,000 growers, with total financial intervention reaching nearly Rs 220 crore, the ministry said.
The assistance will be provided through direct benefit transfer to farmers' accounts. The government said the loan is intended to provide immediate liquidity, help farmers meet household needs, repay institutional loans, and purchase inputs for the next crop season while reducing dependence on private borrowing.
Auctions for the 2025-26 crop season began on March 25, with about 100 million kg of FCV tobacco auctioned so far. The Centre has also permitted sale of excess FCV tobacco of registered and unregistered growers at Tobacco Board-authorised auction platforms for this season.
Indian Opinion Analysis
FCV tobacco is a key cash crop in Andhra Pradesh and Karnataka, grown mainly under the Tobacco Board's quota system. The board sets annual crop sizes and auction platforms for sale, so the permission to sell excess and unregistered tobacco is a significant regulatory relaxation. Global demand shifts and trade disruptions have hit prices and marketing this season. The interest-free loan provides working capital but does not address the underlying market glut. Farmers will watch whether auction prices hold above support levels as the season progresses.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
