Agri Business

Earnings to double if India ups tobacco exports to 10%

Anil Urs Mysore | Updated on September 04, 2011


Although India grows more than 10 per cent of the world's tobacco, our value share of the $11-billion global tobacco leaf export trade is only 5 per cent, according to a Tobacco Institute of India (TII) study.

Explaining Indian tobacco's potential, the study said, “This is because exportable varieties (FCV tobacco) account for less than 50 per cent of country's production. If India aligns its production pattern with global demand and manages to raise its share of exports to even 10 per cent — which is equal to its share of global production — export earnings can be doubled.”

The TII study further said a strong and stable domestic market for cigarettes will benefit farmers, as it will encourage them to grow better quality and higher-revenue varieties, and also protect them against fluctuations in international demand.

Revenue collection can be increased by around Rs 8,000 crore if tobacco demand for cigarettes is restored to the 19971-72 level of 23 per cent, the study said.

Speaking at the TII farmers' awards function, Mr Udayan Lall, Director, TII, said at present tobacco provides livelihood to 38 million people, both direct and indirect, and to over 70 per cent of those engaged in agriculture.

“The crop generates significant amount of revenues for both the State and Central Governments by way of excise duty and other taxes, which cumulatively amounts to over Rs 16,000 crore,” he added.

Lifetime achievement award

At the awards function, the lifetime achievement award was given to Mr M. B. Chandrappa of Mudaganur (Ramnathpura TAP-6C) for growing 1,740 kgs per hectare (with outturn of 65 per cent bright, 20 per cent medium and 15 per cent low).

The following farmers were honoured with the best farmer award: Mr Penubothu Venkateswarlu, Mr Dande Veeranarayana, Mr Edupunganti Harinatham, Mr Hucche Gowda, Mr Induri Viswanatha Reddy.

Recognition awards: Mr Sunkara Raghava Reddy, Mr Katta Venkateswarlu, Mr Vutlapalli Thirupathaiah, Mr Karatam Venkata Reddinaidu, Mr Yalamarthi Srihari Rao, Mr Dhamekula Venkata Subba Rao, Mr Mahesh Gowda, and Mr K V Suresh.

Members of Parliament representing Mysore and Chamarajanagar, Mr A.H. Vishwanath, and Mr R. Dhruvanarayana, Tobacco Board Chairman, Mr G. Kamala Vardhana Rao, Tobacco Auction Board Director, Ms Manju Pillai, and about 500 tobacco farmers from Karnataka and Andhra Pradesh were present .

Published on September 04, 2011

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