INDIA
TOBACCO IN INDIA
Brief contextualization of the importance of Tobacco in India
FC VIRGINIA
% of FCV exportedobacco 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)
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BELGIUM 29%
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NIGERIA 6%
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REPUBLIC OF KOREA 6%
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EGYPT 6%
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NEPAL 4%
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OTHERS 49%
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BELGIUM 24%
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EGYPT 9%
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REPUBLIC OF KOREA 5%
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UNITED ARAB EMIRATES 4%
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NEPAL 4%
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OTHERS 54%