Centre Sanctions Rs 220 Crore Interest-Free Working Capital Loans for Andhra Pradesh FCV Tobacco Farmers

Exam-focused facts from the 27 September 2026 current affairs briefing.

Key facts

The Centre approved a one-time interest-free loan of Rs 50,000 per barn for about 44,000 Flue-Cured Virginia (FCV) tobacco growers in Andhra Pradesh under the Interest-Free Working Capital Assistance Scheme, involving about Rs 220 crore and to be delivered via Direct Benefit Transfer (DBT).
The intervention responds to changing global demand patterns, geopolitical developments and evolving international trade dynamics affecting tobacco procurement and marketing.
Auctions for the 2025-26 crop season in Andhra Pradesh began on March 25, 2026, with around 100 million kg of FCV tobacco auctioned so far.
FCV tobacco is predominantly cultivated in Andhra Pradesh and Karnataka, and the loan is meant to help growers meet household needs, repay institutional loans and buy inputs for the next season.