Despite unfavourable weather conditions in Andhra Pradesh this year, tobacco exports from the country have gone up by 9 per cent both in quantity terms and value (dollars). For the first quarter ended June 30, 2011, exports went up to 64,392 tonnes as against 59,263 tonnes in the same period last year.

With export markets offering good promise, the Tobacco Board is hopeful of reviving Chinese opportunity this year. The Board is sending a team of traders and officials in September to discuss the issue with the Chinese Government.

China, which used to import 10 million kg from India, had put a clamp a few years ago due to quality issues. The two countries, however, have signed a quality assurance pact in 2008 that facilitated exports to China. “China would be a great opportunity as it imports 300 m kg every year,” Mr G Kamala Vardhana Rao, Chairman of Tobacco Board, which works under the Union Ministry of Commerce, told Business Line.

Q1 performance

Value wise, exports in the first quarter shot up by 9 per cent to $232 millions as against $212.50 despite strengthening of the rupee. In rupees, exports accrued Rs 1,038 crore (Rs 970 crore). In the comparable quarter last year, rupee revenues saw a dip of 7 per cent and dollar revenues a marginal decline by one per cent.

“We are happy that exports went up. Good export record will help farmers get better prices next season. Last year, we witnessed a decline in the same quarter. Western Europe continues to contribute over 35 per cent,” the Chairman said.

Products

Tobacco industry had another reason to cheer about. Tobacco products saw a significant growth. Export of tobacco products went up to 9,713 tonnes (7,906 tonnes), earning $52 million ($45.48 m).

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