India approves Rs 220 crore relief for Andhra Pradesh tobacco growers

The Indian government has approved a Rs 220 crore interest-free working capital assistance scheme to support approximately 44,000 Flue-Cured Virginia (FCV) tobacco growers in Andhra Pradesh. Under the program, growers will receive a one-time interest-free loan of Rs 50,000 per barn via Direct Benefit Transfer to help meet household needs, repay institutional loans, and purchase inputs for upcoming seasons.

This intervention follows a season marked by excess production and shifting global market dynamics. While the authorized crop size was 142 million kg, actual production is estimated at 236 million kg. To manage this surplus, the Centre has permitted the sale of excess tobacco from registered growers, as well as unauthorized tobacco from unregistered growers, through official Tobacco Board auction platforms.

Market conditions have shown signs of improvement, with liquidation rates accelerating to 10–11 million kg per week and the rate of no-bids dropping from 40 percent to approximately 10 percent. The Ministry of Commerce and Industry continues to coordinate with stakeholders to ensure orderly procurement and facilitate exports amid evolving international trade patterns.