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Key Points

India has achieved a groundbreaking milestone in tobacco exports, reaching Rs12,005 crore in FY2024. The surge is attributed to strategic government policies and the Tobacco Board's innovative approaches. Farmers have seen significant income improvements, with average earnings more than doubling over five years. This success positions India as a key player in the global tobacco market, demonstrating remarkable agricultural and economic resilience.

Key Points: India's Tobacco Exports Surge to Record Rs12,005 Crore in FY2024

  • India ranks second globally in tobacco production and exports
  • Electronic auction system boosts farmer incomes
  • Andhra Pradesh leads record tobacco production
  • Strategic government policies drive export growth
2 min read

Tobacco exports marked a record Rs12,005 crores in FY2024

India achieves remarkable 87% growth in tobacco exports, becoming a global leader with strategic market mechanisms and farmer support.

"The average earnings of farmers rose from Rs124 per kg in 2019-20 to Rs279.54 per kg in 2023-24 - Tobacco Board Report"

New Delhi, January 1

India's unmanufactured tobacco exports reached a record Rs12,005.89 crore in 2023-24, reflecting a staggering 87 per cent growth over the past five years.

According to the Ministry of Commerce and Industry, export volumes surged from 218.84 million kg in 2019-20 to 315.51 million kg in 2023-24, bolstered by effective government policies and the Tobacco Board's relentless efforts.India, the second-largest tobacco producer globally, has maintained its dominance in the export market.

Through crop planning and production regulation, the Board has effectively catered to both domestic and export demands, while extending crucial handholding assistance to farmers for producing high-quality tobacco that meets international standards.

Tobacco exports have significantly contributed to the national exchequer, providing valuable foreign exchange. India now stands as the second-largest exporter of unmanufactured tobacco by quantity, following Brazil, and ranks fourth in Flue-Cured Virginia (FCV) tobacco production globally.

The Tobacco Board's initiatives have played a vital role in doubling the incomes of FCV tobacco farmers. The average earnings of farmers rose from Rs124 per kg in 2019-20 to Rs279.54 per kg in 2023-24, demonstrating the effectiveness of strategic market mechanisms, including the IT-enabled electronic auction system.

In the 2023-24 FCV tobacco season, Andhra Pradesh witnessed a record-breaking production of 215.35 million kg, with farmers realizing an all-time high average price of Rs288.65 per kg.

The auctions, conducted across 16 platforms, saw 43,021 growers participating, earning a collective Rs6,313.58 crore. The highest price recorded this season was Rs411 per kg, a significant increase from Rs289 per kg last year.

The Board has extended welfare measures, including financial relief, to support farmers in challenging times. Penalty waivers for the sale of 76.84 million kg of excess tobacco saved farmers Rs184 crore.

Additionally, the Board and growers contributed Rs92.70 lakh to the Andhra Pradesh Chief Minister's Relief Fund, aiding victims of recent cyclones.

To ensure sustainable practices, the Board promotes developmental activities and environmentally responsible cultivation. By aligning with government policies, it continues to support farmers and enhance the industry's global competitiveness.

- ANI

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Reader Comments

R
Rajesh K.
This is great news for our farmers! The income doubling in just 5 years is remarkable 👏 Hope this success continues while keeping health concerns in mind.
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Priya M.
While the economic benefits are clear, I wonder if we should be celebrating tobacco exports so much? The health impacts are well known. Maybe we could focus on other crops too?
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Sanjay T.
My uncle is a tobacco farmer in AP and his life has completely changed in last 3 years! New house, kids in good schools. The electronic auction system is a game changer.
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Ananya R.
Interesting to see India's position in global tobacco trade. The numbers are impressive but I hope the Board continues focusing on sustainable practices as mentioned. 🌱
V
Vikram S.
Rs 411 per kg! That's incredible pricing. Shows how quality improvement and proper market mechanisms can benefit farmers directly. More crops need this kind of support.
M
Meena P.
The welfare measures for farmers are commendable. Penalty waivers and cyclone relief show the Board actually cares about growers beyond just production numbers.

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