India’s tobacco exports have surged by as much as 87 per cent during the past five years to touch a record Rs 12,005.89 crore ($1.45 billion) in 2023-24 as against Rs 6,408.15 crore in 2019-20, leading to the more than doubling of farmers’ income, said Commerce and Industry Ministry on Wednesday.
During this period, the export volumes have increased from 218.84 million kg to 315.51 million kg, the statement said. “As the Tobacco Board celebrates its formation day, it proudly highlights that Flue Cured Virginia (FCV) tobacco farmers’ earnings have more than doubled between 2019-20 and 2023-24 from Rs 124.00 per kg in 2019-20 to Rs 279.54 in 2023-24,” the statement said.
The surge in international demand for Indian FCV tobacco this year has played a pivotal role in achieving these unprecedented figures. Not only has this benefited the farmers, but it has also significantly contributed to the national exchequer by generating foreign exchange through exports.
India is the second largest producer of tobacco in the world after China. India is the fourth largest producer of FCV tobacco in the world after China, Brazil and Zimbabwe. India is the second largest exporter of unmanufactured tobacco (quantity terms) after Brazil.
“The 2023-24 crop season has turned out to be a remarkable year for FCV tobacco farmers across Andhra Pradesh. Despite facing natural calamities, our farmers’ determination and resilience resulted in a record-high production of 215.35 million kg of tobacco. This is an outstanding achievement, further complemented by a record-high price realisation of Rs 288.65 per kilogram,” the statement said.
The Tobacco Board has undertaken several strategic activities to ensure the sustainability and growth of the tobacco industry. These include crop planning and regulation of production to meet both domestic and export demands.
The efficient and transparent electronic auction system being implemented by the Tobacco Board for the sale of tobacco produced by the farmers helped in achieving the Government’s vision of doubling farmers’ income in the FCV tobacco sector, the statement said.
The Board supports farmers by providing handholding assistance to produce tobacco of requisite quality to meet the standards of importing countries. The Tobacco Board was established on January 1, 1976, by an Act of Parliament ‘Tobacco Board Act, 1975 (Act 4 of 1975)’.
The Board’s primary role is to ensure the smooth functioning of the farming system, fair and remunerative prices for tobacco farmers and the promotion of exports. Financial assistance is extended to farmers through banks, along with the necessary inputs for the production of quality tobacco. The Board also engages in extension and developmental activities to promote sustainable tobacco cultivation practices.
To ensure better price discovery and secure remunerative prices for farmers, the Tobacco Board has implemented an IT-enabled electronic auctioning system for FCV tobacco. Additionally, export promotion activities are carried out to sustain and improve India’s tobacco exports. Welfare measures are extended to tobacco farmers, providing financial relief in the form of grants and loans during times of need, the statement added.
