India's tobacco exports surges 7% to Rs 14.47 bn in Apr-Jun quarter

Much of the exports were in unmanufactured form especially flue-cured virginia tobacco -- a variety used in cigarettes

India has exported tobacco worth Rs 14.47 bn in the first quarter of the current fiscal, an increase of 7 per cent since last year, mainly to Europe and South East Asia, according to the Tobacco Board.

In volume terms, the export of both tobacco and its products rose by 2.65 per cent to 53,213 tonnes during the April-June quarter of the 2018-19 fiscal.

In the year-ago period, the country had exported 51,802 tonnes valuing Rs 13.52 bn.

Much of the exports were in unmanufactured form especially flue-cured virginia (FCV) tobacco -- a variety used in cigarettes -- followed by small quantities of tobacco products like cigarettes, bidis, hookah tobacco paste, cut tobacco, snuff and cigars, the board's data showed.

Export of FCV tobacco declined to 32,687 tonnes in the April-June period of this fiscal from 33,401 tonnes in the year-ago. However, in value terms, the shipments rose to Rs 8.14 bn as against Rs 7.91 bn in the said period.

However, the export of non-FCV tobacco rose to 12,620 tonnes valued at Rs 2.02 bn during the first quarter of this fiscal from 10,043 tonnes valued at Rs 1.37 bn in the same quarter previous fiscal.

Belgium, Philippines, Nepal, Korea, Germany and the UAE are the major markets for unmanufactured tobacco.

The board data showed a decline in exports of tobacco products in volume terms to Rs 7,906 tonnes during the first quarter of this fiscal from 8,358 tonnes in the year-ago. In value terms, it stood at Rs 4.30 bn as against Rs 4.23 bn in the said period last year.

Among tobacco products, the country exported 4,442 tonnes of chewing tobacco (zarda), 1,812 tonnes of cigarettes, 1,077 tonnes of hookah tobacco paste, 507 tonnes of cut tobacco, 61 tonnes of bidis, 6 tonnes of cigars and one tonne of snuff during the first quarter of this year.

Panama, the UAE, Saudi Arabia, Libya, Sudan, South Africal, Afghanistan, Thailand, Indonesia, and Israel are major markets for export of tobacco products.

During the full 2017-18 fiscal, the country had exported 2,12,916 tonnes worth Rs 55.39 bn of tobacco and its products.

While exports are rising, the government is encouraging farmers to shift to alternative crops so that production and area of tobacco remains lower.