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Tobacco Industry

Tobacco Industry In India
Indian tobacco, introduced by Portuguese in the 17th century, is appreciated worldwide for its rich, full-bodied flavour and smoothness. It is now an increasingly well-known and 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 and Key Markets
  • Total export of tobacco and manufactured tobacco substitutes stood at US$ 904.87 million in FY20. Indian tobacco is exported to around 100 countries.
  • Total export of unmanufactured tobacco stood at US$ 570.30 million in FY19 and reached US$ 530.0 million in FY20.
  • The total export of flue-cured Virginia (FCV) tobacco in January 2021, was US$ 19.5 million, while for a period from April to January 2021, it was US$ 303.7 million.
  • The tobacco export in the month of February 2021, was US$ 69.15 million and the total export during April 2020 to February 2021 was US$ 789.57 million.
  • India export unmanufactured tobacco primarily to Belgium, Korea, Nigeria, Egypt and Nepal. Western Europe is a key market for Indian tobacco export.
Foreign Direct Investment in Tobacco Industry
In August 2020, the parliamentary panel proposed permitting regulated foreign direct investment in India’s tobacco production and cigarette manufacturing to stimulate agricultural exports.
The panel proposed establishment of tobacco farms dedicated to exports only to improve outward shipments and to provide benefits to farmers. It also suggested to provide export incentives for tobacco and tobacco products.
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. It assists tobacco farmers in securing crop loans, quality seeds, fertilisers and other critical inputs, and also counsel’s farmers on GAP to produce quality tobaccos to meet the evolving international demand. In addition, the Board conducts auction 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.
  • Directorate General of Commercial Intelligence and Statistics
  • Tobacco Board
  • Tobacco Asia
Source: India Brand Equity Foundation

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