India's Tobacco Exports Reach an All-Time High of ₹12,005 Crore, Farmers' Earnings More Than Doubled

New Delhi, Jan 1 (NationPress) India's tobacco exports have experienced a significant increase of 87 percent over the last five years, reaching a remarkable ₹12,005.89 crore ($1.45 billion) in 2023-24, up from ₹6,408.15 crore in 2019-20. This surge has led to the more than doubling of farmers' income, according to the Commerce and Industry Ministry.

During this timeframe, export volumes soared from 218.84 million kg to 315.51 million kg, as indicated in the official statement.

As the Tobacco Board commemorates its formation day, it proudly announces that the earnings of Flue Cured Virginia (FCV) tobacco farmers have more than doubled between 2019-20 and 2023-24, rising from ₹124.00 per kg in 2019-20 to ₹279.54 in 2023-24.

The surge in global demand for Indian FCV tobacco this year has been a key factor in achieving these unprecedented figures. This not only benefits farmers but also significantly contributes to the national economy by generating foreign exchange through exports.

India stands as the second largest producer of tobacco worldwide, following China, and ranks as the fourth largest producer of FCV tobacco globally, behind China, Brazil, and Zimbabwe. In terms of quantity, India is the second largest exporter of unmanufactured tobacco, trailing Brazil.

The 2023-24 crop season has proven to be an exceptional year for FCV tobacco farmers in Andhra Pradesh. Despite facing natural calamities, the farmers' determination and resilience led to a record production of 215.35 million kg of tobacco. This achievement is further enhanced by a record price realization of ₹288.65 per kilogram, as highlighted in the statement.

The Tobacco Board has initiated several strategic measures to ensure the sustainability and growth of the tobacco industry, including careful crop planning and production regulation to satisfy both domestic and export demands.

The implementation of an efficient and transparent electronic auction system by the Tobacco Board for the sale of farmers' tobacco has significantly contributed to achieving the government's objective of doubling farmers' income in the FCV tobacco sector.

The Board provides essential support to farmers by offering assistance to produce tobacco of the required quality to meet the standards of importing countries.

The Tobacco Board was established on January 1, 1976, through the 'Tobacco Board Act, 1975 (Act 4 of 1975)'.

Its primary objectives include ensuring the smooth operation of the farming system, guaranteeing fair and profitable prices for tobacco farmers, and promoting exports. The Board extends financial assistance to farmers via banks, along with necessary inputs for quality tobacco production. Additionally, it engages in extension and development activities to advocate for sustainable tobacco cultivation practices.

To facilitate better price discovery and ensure farmers receive fair prices, the Tobacco Board has adopted an IT-enabled electronic auction system for FCV tobacco. Furthermore, export promotion activities are conducted to maintain and enhance India's tobacco exports. The Board also offers welfare measures to tobacco farmers, providing financial support in the form of grants and loans during challenging times, as stated in the report.