India’s tobacco exports to exceed Rs 13,000 cr in 2024; farmers’ earnings double: Report
New Delhi: India's tobacco exports are expected to grow by over 8% this year, exceeding Rs 13,000 crore, PTI reported, citing a senior government official.
Additional Commerce Secretary Rajesh Agrawal stated that the Tobacco Board has initiated several measures to increase farmers' income.
India stands as the second-largest producer of tobacco globally, behind China, and ranks fourth in Flue-Cured Virginia (FCV) tobacco production, following China, Brazil, and Zimbabwe.
India is the second-largest exporter of unmanufactured tobacco in quantity terms, after Brazil.
Tobacco exports make a significant contribution to foreign exchange earnings.
“This year, we will surpass Rs 13,000 crore in exports, and tobacco farmers' incomes have doubled over the last five years," Agrawal noted, according to the report.
In 2023-24, tobacco exports reached Rs 12,005.89 crore (approximately $1.5 billion).
The Tobacco Board, under the Department of Commerce, has undertaken strategic initiatives for the sustainability and growth of the tobacco sector, including crop planning and regulated production to meet both domestic and export demands.
The board assists 80,000–85,000 registered farmers, helping them produce high-quality tobacco that meets global standards.
It has also implemented an IT-enabled electronic auction system for FCV tobacco, a key cigarette ingredient, to ensure better price realisation and fair returns for farmers.
Andhra Pradesh and Karnataka are the primary tobacco-producing states in India, with 26 auction platforms spread across the two regions.
Andhra Pradesh tobacco contains higher nicotine levels compared to Karnataka's.
In 2023, India produced 300 million kilograms of tobacco, though the government regulates production to maintain it at approximately 270 million kilograms.
This aligns with India's commitment to the WHO Framework Convention on Tobacco Control (WHO FCTC).
Notably, no new farmers have been registered for tobacco production in the last decade.
Earnings for FCV tobacco farmers have more than doubled, rising from Rs 124 per kilogram in 2019-20 to Rs 279.54 per kilogram in 2023-24.
The Tobacco Board, established on January 1, 1976, under an Act of Parliament, plays a pivotal role in the tobacco sector.
It ensures the smooth functioning of the farming ecosystem, fair prices for farmers, and the promotion of exports.
Further, the board extends financial assistance through banks, provides inputs for quality production, and promotes sustainable cultivation practices through developmental activities.
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