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Area shrinkage hits global tobacco output

G. Chandrashekhar

MUMBAI, July 1

WORLD production of tobacco continues its downturn for the second year in a row, with planted area in major producing countries shrinking in the wake of efforts to reduce stocks and adjust production to consumption requirement. World production of unmanu factured tobacco for 2001 is estimated at 5.72 million tonnes, down from 5.90 mt of last year and 5.93 mt of 1999.

Planted area for tobacco is trending lower in many of the top producing countries worldwide. Much of this decline can be attributed to producers adjusting their leaf production to be more in line with consumption in order to reduce stock levels, accordin g to the US Department of Agriculture (USDA).

China, the US, India, Brazil, Indonesia and Greece account for nearly three-quarters of the world's unmanufactured tobacco production. While China, which produces a third of the world's leaf, continues to focus on decreasing leaf stocks by limiting produ ction and improving leaf quality, India and Turkey cut production in 2001 to lower leaf stocks after record output over the last couple of years. Area planted in Zimbabwe has decreased because of depressed economic conditions and the ongoing land-ownersh ip crisis, the agency pointed out.

For 2001, India's production of unmanufactured tobacco is estimated at 5.30 lakh tonnes, down from 5.99 lakh tonnes of last year. The main flue-cured production area in India is on a crop holiday because of strong production and stagnant demand in 2000 w hich led to record leaf stock levels, USDA commented, adding that flue-cured production is estimated to drop by 70 per cent in 2001 due to efforts by the industry to cut total stocks by 60 per cent.

India's consumption has been steadily declining since 1999. For 2001, consumption is estimated at 4.70 lakh tonnes, down from 2000 level of 4.74 lakh tonnes and 4.78 lakh tonnes in 1999 and 4.83 lakh tonnes in 1998. Exports from the country have been exp anding gradually since 1998. For 2001 exports are projected at 1.25 lakh tonnes, marginally up from 1.23 lakh tonnes of last year.