The Tobacco Board was established in 1976 to regulates tobacco production, ensures fair prices for farmers, and supports domestic and export demands. India, the second-largest tobacco producer and fourth-largest producer of Flue Cured Virginia, has a competitive edge due to low production, farming, and export costs.
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The Tobacco Board prioritizes industry sustainability and growth, with exports reaching 12,005 crores in 2023-24.
It was established in 1976 under the Tobacco Board Act of 1975, and its headquarters is in Andhra Pradesh.
It regulates tobacco production and ensures fair prices for farmers.
It works on crop planning to meet both domestic and export demands, providing financial assistance to farmers through banks.
It assists farmers by assisting to ensure that their tobacco meets the required quality standards for export.
It organises training and development activities to promote sustainable farming techniques, ensuring that farmers can compete in the global market.
Tobacco grows best in well-drained, well-aerated soils that are free from waterlogging. Light-coloured flue-cured tobacco requires light, sandy soil, while dark-coloured air-cured tobacco needs silty loam to clay loam soil.
Tobacco grows best in climates with a frost-free period of 90 to 120 days and a mean daily temperature between 20 to 30°C. A dry period is essential for ripening and harvesting the leaves.
The tobacco production process includes moisturizing, conditioning, cutting, expanding, and drying. Afterwards, the tobacco lamina and stems are blended for flavouring and packing.
India is the second-largest producer of tobacco in the world, after China. It is also the fourth-largest producer of Flue Cured Virginia (FCV) tobacco, following China, Brazil, and Zimbabwe.
India is the only country which produces tobacco in two seasons.
India has approximately 0.45 million hectares of land under tobacco cultivation, accounting for about 10% of the global area dedicated to tobacco farming and 9% of the global tobacco production.
The tobacco industry in India employs around 45.7 million people, including those involved in farming, labour, manufacturing, processing, and export activities.
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India’s tobacco industry benefits from low production, farming, and export costs. Indian tobacco has a competitive edge due to its lower levels of heavy metals, Tobacco Specific Nitrosamines (TSNAs), and pesticide residues. |
From 2019-20 to 2023-24, the price of FCV tobacco increased from Rs.124.00 per kg to Rs.279.54 per kg. This increase is a result of effective government policies, efficient market mechanisms, and the implementation of an IT-enabled electronic auction system to improve price discovery.
The major tobacco-producing states in India are Gujarat, Andhra Pradesh, Uttar Pradesh, Karnataka, West Bengal, Telangana, and Bihar.
Gujarat, Andhra Pradesh, and Uttar Pradesh contribute significantly to the country’s tobacco production, with Gujarat accounting for about 45%, Andhra Pradesh for 20%, and Uttar Pradesh for 15%.
The 2023-24 FCV tobacco season in Andhra Pradesh was a record-breaking one. Despite facing natural calamities, the state saw the highest-ever production of 215.35 million kg of tobacco.
India holds the position of the second-largest exporter of unmanufactured tobacco after Brazil. Tobacco export value reached Rs.12,005.89 crore in 2023-24.
In 2023-24, the UAE is the largest tobacco importer, accounting for about 19.76% of India's total exports. Belgium and Indonesia import around 18.57% and 6.09% of the total, respectively.
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PRACTICE QUESTION Q.Consider the following statements: 1. India is the largest producer of tobacco in the world. 2. Andhra Pradesh is the largest producer of tobacco in India. Which of the above statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Answer:D Explanation: Statement 1 is incorrect: India is the world's second-largest tobacco producer, following China. The country has approximately 0.45 million hectares of tobacco cultivation. India accounts for approximately 10% of the total area under tobacco cultivation. Globally, it accounts for 9% of all tobacco production. Statement 2 is incorrect: Gujarat, Andhra Pradesh, Uttar Pradesh, Karnataka, West Bengal, Telangana, and Bihar are India's leading tobacco-producing states. Gujarat, Andhra Pradesh, and Uttar Pradesh account for about 45%, 20%, and 15% of the country's total production. |
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