# Andhra Pradesh tobacco market and grower support > Live situation record from CLSTR: https://clstr.news/situations/andhra-pradesh-tobacco-market-and-grower-support > Updated: 2026-09-25T14:36:24.000Z. Sources: 5. Developments: 2. The Flue-Cured Virginia (FCV) tobacco market in Andhra Pradesh has faced challenges due to a significant production surplus, with estimated output reaching 236 million kg against a permitted volume of 142 million kg. Initially, officials reported improving auction conditions as buyer competition increased and the rate of ‘no-bid’ bales declined. By early September, the average price was recorded at Rs 209.83 per kg, lower than the previous year’s average of Rs 248.86 per kg. To address the surplus and support the sector, the Indian government approved a Rs 220 crore interest-free working capital assistance scheme. This program provides approximately 44,000 growers with a one-time loan of Rs 50,000 per barn via Direct Benefit Transfer. Additionally, the Centre has permitted the sale of both registered and unregistered tobacco through official Tobacco Board platforms to manage the excess supply. Market liquidation rates have since accelerated to 10–11 million kg per week, with no-bid rates dropping further to approximately 10 percent. ## Timeline ### 2026-09-25: India approves Rs 220 crore relief for Andhra Pradesh tobacco growers India has approved a Rs 220 crore interest-free loan scheme for 44,000 tobacco growers in Andhra Pradesh and permitted the sale of excess FCV tobacco to stabilize the market. 2 sources. https://clstr.news/cluster/india-approves-rs-220-crore-relief-for-andhra-pradesh-tobacco-growers ### 2026-09-06: Andhra Pradesh tobacco auction conditions improving Andhra Pradesh Agriculture Minister Kinjarapu Atchannaidu stated that FCV tobacco auction conditions are improving due to increased buyer competition and a significant reduction in ‘no-bid’ bales. 4 sources. https://clstr.news/cluster/andhra-pradesh-tobacco-auction-conditions-improving --- Cite as: Andhra Pradesh tobacco market and grower support. CLSTR, https://clstr.news/situations/andhra-pradesh-tobacco-market-and-grower-support