INDIA

EXPORT OVERVIEW

Export Overview comprises information regarding the national exports of tobacco leaf

IN THE WORLD

6%

Percentage that the country represents in the international tobacco leaf trade (Source: calculated from data from FAO)

PRODUCTION OUTLOOK

Types of tobacco leaf grown in 2017 (Source: ITGA): FC Virginia, Burley, HDBRG, Air/Sun Cured, Oriental, Bidi, Hooka, Chewing

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

PEOPLE INVOLVED IN TOBACCO

Employment numbers of the tobacco leaf value chain in 2017 (Source: ITGA): People whose livelihood depends on tobacco: 46 million; Farmers: 6 million; Farm Labour: 20 million; People working on manufacturing and processing: 19.7 million

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

AREA BY LEAF TYPE

Represents the percentage of area cultivated by tobacco leaf type in the country in 2017 (Source: ITGA)

25%FC VIRGINIA
46%CHEWING
17%BIDI
4%HOOKAH
1%BURLEY
7%OTHERS

KEY INSIGHTS

Key statistics of the tobacco leaf production in the country

436

AREA

Thousand Hectares (2018), Source: ITGA

836

PRODUCTION

Thousand Tons (2018), Source: ITGA

1.09

AREA/GROWER

Hectares per Grower (2017), Source: ITGA

555

EXPORT VALUE

Million US$ (2019), Source: UN Comtrade

1,814

PRODUCTION VALUE

Million US$ (2018), Source: ITGA

1,916

YIELD

kg per Hectare (2018), Source: ITGA

4,158

REVENUE/HA

US$ per Hectare (2018), Source: ITGA 

TOBACCO IN INDIA

Brief contextualization of the importance of Tobacco in India

60%

FC VIRGINIA

% of FCV exported
T

obacco was introduced in India by the Portuguese around the 16th or the 17th century. The cultivation of the crop provides livelihood to millions of people in the country. Tobacco remains as one of the crops that is suitable to be grown in poorer soils, and the FC Virginia variety is the most economically viable agricultural exploration options for many growers. As banks prefer cash crops, loans for the exploration of tobacco are more readily available. Farmers highlight the profitable nature of tobacco growing as a motive to continue growing. There are defined marketing structures, as well as organized agricultural extension programs that provide growers with the aid they require while growing tobacco. Due to a significant tax burden, cigarettes share of the tobacco market has lowered significantly, representing close to 10% of total tobacco consumption. However, it represents 90% of the revenue collected from tobacco tax. In the opposite direction, the illegal cigarette trade share has increased to represent today 25% of the total industry. The main types of tobacco products consumed, bidisand chewing tobacco, occupy the largest share of the tobacco market

Sources: Tobacco and Nicotine database, Food and Agriculture Organization of the United Nations (FAO), Prasad (2007), Tobacco Institute of India and ITGA.

INDIA IS THE SECOND LARGEST TOBACCO PRODUCER IN THE WORLD AND THE SECOND LARGEST EXPORTER ONLY BEHIND BRAZIL

EXPORT PARTNERS

This section aims at identifying the most important commercial partners in terms of Value and Quantity (Source: Calculated from data from UN Comtrade)

  • BELGIUM 29%

  • NIGERIA 6%

  • REPUBLIC OF KOREA 6%

  • EGYPT 6%

  • NEPAL 4%

  • OTHERS 49%

  • BELGIUM 24%

  • EGYPT 9%

  • REPUBLIC OF KOREA 5%

  • UNITED ARAB EMIRATES 4%

  • NEPAL 4%

  • OTHERS 54%

                                    VALUE (2017)                                                                                                          QUANTITY (2017)