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| Tobacco export up 39% during Apr-Aug on demand surge |
| Press Trust of India / New Delhi Oct 08, 2009, 16:41 IST |
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Tobacco export rose by 39 per cent between April and August to about Rs 1,780 crore on robust demand overseas which also pushed up prices of Indian tobacco.
India is the third largest tobacco exporter in the world.
"India exported raw tobacco and tobacco products worth Rs 1,779.68 crore during April-August this year, compared with Rs 1,281.54 crore in the same period last year. Demand from Western Europe and African countries rose," an official with the state-owned Tobacco Board said.
"Global tobacco output in the last 4-5 years has been stagnant whereas demand has grown by up to one per cent a year despite anti-tobacco norms in some countries, triggering a price rise," another Board official said.
This apart, shortfall in some of the producing countries like Zimbabwe boosted demand for Indian tobacco, he added.
However, the rise in the volume of export is not that dramatic as the value. Tobacco shipment, comprising raw tobacco and its products, rose marginally to 1,04,940 tonnes in the first five months of this fiscal against 1,01,708 tonnes a year earlier.
While raw tobacco export has surged both in value and volume terms, that of tobacco products has lagged.
India has shipped abroad raw tobacco worth Rs 1,497.59 crore from April to August against Rs 1,039.30 crore in the year-ago period, while in volume terms, the export shot up to 94,151 tonnes from 89,443 tonnes.
The shipment value of tobacco products rose to Rs 282.09 crore till August this fiscal from Rs 242.24 crore a year earlier. However, the export volume has declined to 10,789 tonnes from 12,265 tonnes during the period.
Indian tobacco prices have skyrocketed on a surge in demand overseas. Officials said the average price of tobacco in the ongoing auction in Karnataka is going to exceed the record price soon.
The rate was ruling at Rs 108.02 per kg as on October 6, compared with the record auction price of Rs 109.71 a kg in the last season, according to official data.
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