Trade Analytics

Tobacco Industry in India

Last Updated: December, 2016

Introduction

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. India is the third-largest tobacco producer in the world, with annual production of about 800 million kgs.

Tobacco and tobacco products generate around US$ 2.9 billion in revenues to the national exchequer by way of excise duty, and around US$ 728.9 million by way of foreign exchange every year.

EXPORTS AND KEY MARKETS

  • Export of tobacco products from India stood at 20,280 tons, valued at US$ 15.6 million, in July 2016. During the period, export of Flue Cured Virginia (FCV) tobacco stood at 7,997 tons valued at US$ 26.4 million, while unmanufactured tobacco exports stood at 12,541 tons valued at US$ 36.8 million.
  • Indian tobacco is exported to about 100 countries.
  • India exports unmanufactured tobacco primarily to Western Europe, South and Southeast Asia, East Europe and Africa. 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 counsels 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 also invites delegations from other countries.

Total exports of manufactured and unmanufactured tobacco and tobacco products stood at 240,448 tons, valued at US$ 918.36 million in FY 2015-16.

Source:
Tobacco Board

TOBACCO E-BROCHURE

Other Export Promotion Councils:

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

Tobacco

1 - G.T. Road, Srinivasarao Thota
Guntur - 522004
Andra Pradesh
India

Tel.:+91-863-2358399/2358499/2327550
Fax: +91-863-2354232
Email: info@indiantobacco.com
Website: www.indiantobacco.com

Total exports of manufactured and unmanufactured tobacco and tobacco products stood at 240,448 tons, valued at US$ 918.36 million in FY 2015-16.

Source:
Tobacco Board

Exports

Tobacco Industry in India