Insurance Premia On Itc Exports Surge

The industry had to sustain major losses due to the distintegration of the Soviet Union, which used to serve as a major destination for tobacco.

In the wake of the major decline in exports to the Soviet Union, the industry is at present tapping newer markets in the Gulf, South-East Asian, Bangladesh and Nepal.

The countrys tobacco exports rose from Rs 161 crore in 1985-86 to Rs 421 crore in 1995-96.

The maximum growth, however, took place between 1990-91 and 1993-94, when exports increased from Rs 260 crore to Rs 486 crore.

The year 1992-93 recorded tobacco exports of Rs 508 crore.

 

The risk value associated with exports also increased from Rs 117 crore in 1990-91 to Rs 216 crore in 1992-93 for ECGC.

Due to rising tobacco exports to Russia, a risk prone country, the risk premium income also increased from Rs 27 lakh in 1990-91 to Rs 1.3 crore in 1993-94.

The risk value of tobacco in Indias exports jumped by over 160 per cent from Rs 92.67 per cent in 1994-95 to Rs 241.65 crore in 1995-96.

As a result Export Credit Gurantee Corporations coverage also increased from 35 per cent to 57 per cent in 1995-96.

Currently, ECGC covers 54 per cent of tobacco exports on LC while the the balance is covered on non-LC terms.

Tobacco exports grew by 57 per cent from 55,422 tonnes in 1994-95 to 83,916 tonnes in 1995-96.

The export target has been fixed at Rs 472 crore during 1996-97.

Tobacco Institute of India hopes the countrys share in the world market will increase from the present 0.5 per cent to over 3 per cent in the next three years.

The institute has estimated an increase in foreign exchange earnings to Rs 5000 crore from Rs 400 crore at present.

Indias tobacco exports increased from Rs 161 crore in 1985-86 to Rs 421 crore in 1995-96, a growth of over 150 per cent in 10 years.

Hyderabad accounts for 68 per cent of Indias exports followed by Mumbai (15 per cent), Calcutta (10 per cent), Madras (five per cent) and Moradabad (one per cent).

Nearly 20 per cent of the exports used to go to the United Kingdom, followed by 14 per cent to the CIS countries, 14 per cent to Bangladesh, seven per cent to Saudi Arabia, six per cent to Belgium and five per cent to Nepal.