The Centre has approved a one-time, interest-free loan of ₹50,000 per barn for Flue-Cured Virginia tobacco growers in Andhra Pradesh, covering approximately 44,000 tobacco growers with total financial intervention reaching near ₹220 crore. According to the Commerce Ministry statement, the assistance is proposed to be provided directly to farmers through direct benefit transfer (DBT). The financial intervention aims to "provide immediate liquidity to tobacco growers, enable them to meet household requirements and repay institutional loans, purchase inputs for the ensuing crop season and reduce dependence on private borrowing," as stated in the ministry's announcement.
The Centre has granted permission for the sale of excess tobacco in Andhra Pradesh during the 2025-26 crop season. According to a commerce ministry notification dated September 24, this relaxation applies specifically to auctions conducted during the current crop season and permits sales through auction platforms authorised by the Tobacco Board. The notification clarifies that this is a temporary measure for the auctions during the crop season 2025-2026, providing market access for surplus production. The centre has relaxed the operation of a provision of the Tobacco Board Act in Andhra Pradesh for these auctions, as stated in the official notification.
Auctions for the 2025–26 crop season in Andhra Pradesh commenced on March 25, 2026, with about 100 million kg of FCV tobacco auctioned so far. This tobacco is predominantly cultivated in Andhra Pradesh and Karnataka, with the Centre's statement noting that the global tobacco market has witnessed changing demand patterns, geopolitical developments and evolving international trade dynamics, influencing procurement and marketing conditions. The government is undertaking coordinated measures to facilitate procurement, enhance market participation and promote exports, with continuous engagement being conducted with exporters, buyers, growers and other stakeholders to facilitate smooth marketing of the crop.
The permission specifically covers sales conducted through auction platforms authorised by the Tobacco Board. As reported in the commerce ministry notification, this regulatory framework ensures proper oversight and transparency in the excess tobacco sale process. The authorisation ensures that only legitimate auction platforms can facilitate these sales during the specified crop season, with the notification stating that the centre has relaxed the operation of a provision of the Tobacco Board Act in Andhra Pradesh for these auctions.
The relaxation specifically applies to 'Flue-Cured Virginia tobacco' of both registered and unregistered growers in Andhra Pradesh. According to the commerce ministry notification, this covers Flue-cured tobacco of the registered growers and unauthorised Flue-Cured Virginia tobacco of the unregistered growers at the auction platforms authorised by the Tobacco Board. Flue-cured tobacco is tobacco dried in a special, smoke-free barn using heat channelled through metal pipes, or flues, making it a premium tobacco variety. The notification specifically permits the sale of excess Flue-Cured Virginia tobacco of both categories of growers at these authorised platforms.
