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Tobacco Industry In India

Indian tobacco, introduced by the Portuguese in the 17th century, is appreciated worldwide for its rich, full-bodied flavour and smoothness. It is now an increasingly well-known as well as respected commodity in global tobacco markets and has found its way into cigarettes manufactured in several countries. India has an impressive and progressive profile in the global tobacco industry, and it is an important commercial crop grown here. India is the second-largest tobacco producer and exporter in the world.

Export Highlights

  • Total exports of tobacco and manufactured tobacco substitutes stood at US$ 981.33 million in 2018-19 and reached US$ 558.40 million in 2019-20 (till October 19P). Indian tobacco is exported to about 100 countries.
  • Total exports of unmanufactured tobacco stood at US$ 570.30 million in 2018-19 and reached US$ 318.89 million in 2019-20 (till October 19P).
  • India exports unmanufactured tobacco primarily to Belgium, Korea, Nigeria, Egypt and Nepal. Western Europe is the key market for Indian tobacco exports.

Tobacco Board

The Tobacco Board of India is a facilitator for tobacco growers, traders and exporters. By creating synergies between these stakeholders, the Board fosters a vibrant enterprise, with a deep social conscience and strong national commitment. The Board estimates demand and regulates the production of FCV tobacco to match demand to ensure a fair price for the produce. The Tobacco Board assists tobacco farmers in securing crop loans, quality seeds, fertilisers and other critical inputs; it also counsel’s farmers on GAP to produce quality tobaccos to meet the evolving international demand. In addition, the Board conducts auctions for the sale of tobacco in a competitive and transparent environment. On the export front, the Board strives to improve the existing markets and develop new markets for Indian tobacco and tobacco products by undertaking brand building exercises and participation in international tobacco exhibitions. The Board sponsors trade delegations to potential importing countries and invites delegations from other countries.

Source: India Brand Equity Foundation

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