India’s Tobacco Exports Surge To Record High Of Rs 12,005 Cr

New Delhi: India’s tobacco exports have surged by as much as 87 per cent during the past five years to touch a record Rs12,005.89 crore ($1.45 billion) in 2023-24 as against Rs6,408.15 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 Rs124.00 per kg in 2019-20 to Rs279.54 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 Rs288.65 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.