Andhra Pradesh Agriculture Minister Kinjarapu Atchannaidu on Monday said the state government would extend all possible support to Flue-Cured Virginia (FCV) tobacco farmers and directed companies to purchase produce at government-fixed prices from August 11.
At a meeting at the Tobacco Board office here, the Minister said the Board had permitted production of 140 million kg, but farmers cultivated more expecting better prices, resulting in around 240 million kg production. The international market conditions have also affected prices.
"The state government will extend all possible support to FCV tobacco farmers and ensure that companies purchase their produce at the government-fixed prices from Tuesday," said Atchannaidu in an official press release.
1 August 2026
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He said the government would not remain a mute spectator if farmers suffered losses and would make every possible effort to support them despite adverse market conditions.
The minister said companies must purchase Bright grade at ₹230 per kg, Medium at ₹190, off-style at ₹130 and Low grade at ₹110.
He warned of stringent action against companies violating the fixed prices.
The Centre has agreed to provide an interest-free loan of ₹50,000 for two years to every eligible tobacco farmer, including tenant farmers and those who cultivated with or without Board permission, said the Minister.
The state will provide ₹1,000 per quintal for 94 million kg of off-style and low-grade tobacco, amounting to an additional ₹10 per kg, he said, adding that the assistance will be transferred directly to farmers' bank accounts after sale through the Direct Benefit Transfer system.
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Atchannaidu said tobacco cultivation would be restricted to 80 million kg next season, with controls beginning at the seed-supply stage based on market demand.
