India stands to lose 38 million jobs and revenue worth Rs 21, 000 crore due to non-ratification of the Framework Convention on Tobacco Control (FCTC), which allows collection of revenues by way of exports and excise duty, says a study jointly done by the ASSOCHAM and Thought Arbitrage Research Institute (TARI).

Tobacco contributes over Rs 21,000 crore to the national exchequer through foreign exchange earnings and internal excise revenue and accounts for about 10 per cent of total agricultural exports from India and hence is a critical contributor to the basket of agricultural exports.

The study titled ‘Tobacco Economics in India: The voice of farmer and other stakeholders, ’ suggested "A multi-pronged strategy of agricultural diversification in a phased manner and shifting to other economic activities is the need of the hour to provide sustainable livelihood solutions to the people associated with tobacco".

"This strategy is likely to be more effective than legislation to control tobacco as its cultivation is a lifeline for a sizeable population including rural women, tribals and other weaker sections of the society, who have few means of alternative income opportunities," said DS Rawat, national secretary general of the Chambers and Kaushik Dutta, founder, TARI at a media conference here today.

The non-ratification of treaty for limiting production of tobacco will lead to trade disputes and illegal smuggling thereby threatening millions of jobs and result in lower taxes, duties and foreign exchange which comes through exports.

If India withdraws from this market wholly or partially, the market will be catered by countries which are not bound by any convention and Indian tobacco growers, in the absence of alternative livelihood would also lose the benefit that accrues from exports, the study noted.

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