Tobacco Industry in India

Last Updated: August, 2015

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. The major exportable variety, Flue Cured Virginia (FCV) tobacco, is produced mainly in Andhra Pradesh and Karnataka, with production in 2014–15 totalling 297 million kgs. This has led to India emerging as a leading exporter of FCV tobacco globally.

EXPORTS AND KEY MARKETS

  • Exports of Indian tobacco and tobacco products have witnessed steady growth. Exports rose at a CAGR of 9.0 per cent to US$ 918.9 million in 2014–15 from US$ 502.2 million in 2007–08.
  • In 2014–15, India exported 246 million kgs of tobacco and tobacco products.
  • India ranks third in terms of production of tobacco and in exports, after Brazil and the US.
  • 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 for manufactured and unmanufactured tobacco stood at US$ 883.26 million for FY 2014-15.

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 for manufactured and unmanufactured tobacco stood at US$ 883.26 million for FY 2014-15.

Source:
Tobacco Board

Exports

Tobacco Industry in India

x IBEF : India Brand Equity Foundation