India Reports on Production and Export/Import of Tobacco

OREANDA-NEWS. April 27, 2015. The Tobacco Board under the Ministry of Commerce & Industry regulates the production and promotion of export of Flue Cured Virginia (FCV) tobacco in the country.  The production and consumption of FCV tobacco in India during last 3 years, state wise is as follows:

Production:

 (Qty in Million.Kgs)

                        *Estimated Production Source: Tobacco Board

Consumption:

        Source: Tobacco Board (*Information up to December, 2014)

FCV tobacco crop is a highly regulated and subjected to stringent restrictions on extent of area planted, quantity of tobacco produced and cured. Production of tobacco in excess of authorised limits and without registration from Board is subject to levy of heavy penalties deterring the farmers from doing so.Violations of the Tobacco Board Act and Rules entail appropriate punishments as laid out in the Act/ Rules. Tobacco Board has restricted horizontal expansion of the area under tobacco by not granting registration to new growers, and not issuing any licenses for construction of new barns creating additional curing infrastructure and not expanding FCV tobacco cultivation to new areas. Tobacco Board is encouraging farmers to go for alternative crops / cropping systems.  

The quantum and value of tobacco and other value added products exported and imported from/to the country during the last 3 years (no data  is available for current year), country-wise is given as under: 

Exports

(HS Code 2401)

      (QTY. IN TONS, VALUE IN ? in Lakh)

S.No	COUNTRY	2012-13		2013-14		2014-15*
						April 14 - Feb' 15
		QTY	VALUE	QTY	VALUE	QTY	VALUE
1	Belgium	38610	75239.19	47577	117572.3	24940	58231.84
2	Egypt	11159	14299.42	14333	23597.39	19511	31387.7
3	Philippines	6295	10403.63	10687	22365.78	13230	22450.8
4	Russia	14170	25828.48	12812	28948.58	10839	23648.69
5	DPR Korea	12656	21052.79	11012	21523.23	9943	19323.04
Others		145133	236360	139232	270984	102606	191661
Grand Total		228023	383184	235653	484991.77	181069	346703.38

(Source: Tobacco Board)

Import

(HS Code 2401)

     (QTY. IN TONS, VALUE IN ? in lakh)

Commodity	2012-13		2013-14		2014-15 (Apr to Feb)
	QTY	Value	QTY	Value	QTY	Value
ZIMBABWE	1,070.41	5,267	872.8	486	1,063.98	5,845
BRAZIL	240.4	1,048	221	1,055	260.8	121
TURKEY	261.82	1,358	249.48	1,599	259.56	1,614
INDONESIA	6.44	0.03	41.58	188	96.4	439
NEPAL	83.59	0.02	78.58	0.02	77.5	0.02
Others	504.12	1,488	85.91	205	137.13	625
Total	2,166.78	9,193	1,549.35	7,954	1,895.37	9,734

            (Source: DGCI&S)

Tobacco Board is regulating the production of FCV tobacco based on market dynamics to ensure fair and remunerative prices to tobacco farmers. As a policy, Tobacco Board is not going for horizontal expansion of tobacco. Further, India is a signatory to WHO’s Frame work Convention on Tobacco Control (FCTC) whereby there is an obligation to implement the provisions of FCTC in India to reduce the consumption of tobacco. Appropriate supply management also helps in ensuring remunerative prices to growers.

Tobacco Board provides timely inputs to farmers.  Tobacco Board also implements many extension and developmental schemes with its wide network of qualified and trained technical staff in collaboration with Central Tobacco Research Institute (CTRI), Rajahmundry and National Institute of Plant Health Management (NIPHM) aimed at improving the yield and quality of the tobacco, mechanization in tobacco farming and transfer of technology product integrity/post harvest product management. Further, the Tobacco Board is participating in International Trade Fairs, Exhibitions, and International Tobacco Trade Forums. Advertisement in international print media, branding of Indian tobacco in international media, holding interaction between various stake holders, participation in the international fairs / exhibitions and buyer seller meets are other measures undertaken to encourage production / cultivation and export.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.