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Centre approves one-time interest-free loan of  ₹50,000 per barn for Andhra tobacco farmers — How will credit come? | Mint
INCOME TAX
26 Sept 2026

Centre approves one-time interest-free loan of ₹50,000 per barn for Andhra tobacco farmers — How will credit come? | Mint

The Centre has approved a one-time, interest-free loan of ₹50,000 per barn for Flue-Cured Virginia tobacco growers in Andhra Pradesh. It covers about 44,000 growers, with total support near ₹220 crore, paid straight into their bank accounts through direct benefit transfer. This gives growers quick cash for household needs, loan repayment and next season's inputs. Sale of excess crop at authorised auction platforms is also allowed.

Key Statutory Highlights

  • The Centre approved a one-time, interest-free working capital loan of ₹50,000 per barn for Flue-Cured Virginia tobacco growers in Andhra Pradesh.
  • The proposal covers about 44,000 tobacco growers, with the total financial intervention reaching near ₹220 crore.
  • The assistance is to be given directly to farmers through direct benefit transfer, and registered and unregistered growers can sell excess FCV tobacco for the 2025-26 crop season at Tobacco Board authorised auction platforms.
Actionable Advice for Taxpayers / Founders:If you are an FCV tobacco grower in Andhra Pradesh, check with your Tobacco Board office or grower association on how the per-barn assistance will be credited, and keep your bank and barn details updated before you plan any loan repayment. Please confirm your eligibility with the Board rather than assuming it.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
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