Indian Tobacco Exports Touch New Highs
Indian Tobacco Exports Touch New Highs
The Indian tobacco sector has made it to a new milestone. It has surpassed last year's record in terms of both quantity and value. In the financial year, 2013-2014, 2.64 lak tonnes of tobacco and tobacco products totalling Rs. 6059 crore were exported. Contribution of unmanufactured tobacco to volumes was Rs. 4842 crore. 29.534 tonnes of tobacco products valued at Rs. 1217 crore.
Exports to Western Europe dominated with over 34%. This was followed by Eastern Europe (14%), the Gulf(11%), South and South East Asia (20%). The Flue Cured Virginia tobacco exports have surpassed previous record of 1.74 lakh tonnes (clocked during 2009-2010) to reach 1.80 lakh tonnes.
FCV tobacco exports have hit new heights. Exports totalling Rs.4086 crore or $675 million were reached, according to the Tobacco Board. Exports of FCV tobacco during 2013-2014 have increased by 2% in quantity terms. In rupee and dollar terms, the increase has been 28% and 15%.
Major destinations for Indian unmanufactured tobacco for this period included Russia, Korea, Belgium, Netherlands, Germany, Yemen, Nepal and Poland. Indian tobacco exports have crossed the $ 1 billion mark during this year because of a strong dollar and an increase in the global demand of certain varieties of tobacco. During this current financial year, Indian tobacco industry reported exports of 6,059 crore which is a 22% growth over the previous year's 4979 crore.
The record for the highest exports so far in value terms was during the year 2009-2010. It was pegged at $928 million. Indian is the third largest producer of tobacco in the world. It is also the second largest exporter of tobacco. The surge in exports was due to the significant increase in exports of flue-cured tobacco at 1.8 lakh tonne for a value of 4085 crore up from 1.73 lakh tonne a year ago.
The country saw only a marginal growth in the overall volume of exports including unmanufactured tobacco as well as tobacco products such as cigarettes up at 2.64 lakh tonne. The dollar appreciated 11% against the domestic currency during the same period.
The two states which produce the largest amount of tobacco in the country are Andhra Pradesh and Karnataka. They account for more than half of the tobacco production in India. The Tobacco Board is positive about the tobacco exports during the current fiscal. It has been a massive achievement to cross the $1 billion mark in exports, according to Tobacco Baord chairman K Gopal.
The Indian Tobacco Board has set a target of Rs. 7000 crore of exports during the current fiscal. This is a growth of over 15% in value and a marginal growth in volume. Indian tobacco is more affordable compared to that manufactured by Brazil and Zimbabwe. Its USP was undoubtedly its price. While the average global tobacco price was $4 per kg, Indian tobacco was available at $2.7 per kg. The key markets that enabled the growth of the Indian tobacco industry were western and eastern Europe. Together, they accounted for about half the exports of unmanufactured tobacco in the world. Clearly, the Indian tobacco industry is set to scale new heights in the coming years.
