(MENAFN- KNN India)
New Delhi, Jan 2 (KNN) India's tobacco exports are expected to surpass Rs 13,000 crore in the current fiscal year, marking an 8 percent increase from the previous year's Rs 12,005.89 crore, according to Department of Commerce Additional Secretary Rajesh Agrawal.
The announcement came during a press briefing on Wednesday, highlighting India's significant position in the global tobacco market.
India maintains its status as the world's second-largest tobacco producer after China and holds the fourth position globally in Flue-Cured Virginia (FCV) tobacco production, following China, Brazil, and Zimbabwe.
In terms of unmanufactured tobacco exports, India ranks second globally after Brazil, contributing substantially to the nation's foreign exchange earnings.
The Tobacco Board, operating under the Department of Commerce, has implemented various strategic initiatives to ensure the industry's sustainability.
These efforts include systematic crop planning and production regulation to meet both domestic and international demand.
The board currently supports between 80,000 and 85,000 registered farmers, providing crucial assistance to maintain export-quality standards.
In a significant technological advancement, the board has implemented an IT-enabled electronic auctioning system for FCV tobacco, primarily used in cigarette production.
This system operates across 26 auction platforms, with 16 in Andhra Pradesh and 10 in Karnataka, the country's primary tobacco-producing states. Notably, Andhra Pradesh's tobacco is characterised by higher nicotine content compared to Karnataka's variety.
While India's tobacco production reached 300 million kg last year, the government aims to maintain production levels around 270 million kg.
As a signatory to the WHO Framework Convention on Tobacco Control (WHO FCTC), India has not registered new farmers for production in the past decade, demonstrating its commitment to responsible industry management.
The financial outlook for tobacco farmers has shown marked improvement, with FCV tobacco farmers' earnings more than doubling from Rs 124 per kg in 2019-20 to Rs 279.54 in 2023-24.
The Tobacco Board, established on January 1, 1976, continues to fulfil its mandate of industry development, ensuring fair prices for farmers, and promoting exports while providing financial assistance through banks and supporting sustainable cultivation practices.
(KNN Bureau)
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