The center approved interest-free loans for tobacco growers in Andhra Pradesh.

The initiative covers around 44,000 tobacco producers, with the total financial intervention approaching Rs 220 crore. The funds are allocated under an interest-free working capital assistance scheme to support industry participants amid changing global market conditions.

The financial assistance will be transferred directly to farmers through the Direct Benefit Transfer (DBT) system. This measure is designed to provide immediate liquidity to farms, help farmers cover household expenses, settle institutional loans, purchase inputs for the upcoming season, and reduce dependence on private loans.

In addition, the government has permitted the sale of surplus tobacco of the "Flue-Cured Virginia" cultivar by registered and unregistered producers in Andhra Pradesh at auction platforms authorized by the Tobacco Board during the 2025–2026 season. For this purpose, the operation of the relevant provision of the Tobacco Board Act in the state has been temporarily amended.

The authorities are also coordinating measures to simplify procurement, expand market participation, and promote exports. Ongoing engagement is maintained with exporters, buyers, and other stakeholders to ensure smooth marketing of the harvest and strengthen the sector.