Tobacco Exports Surged 68% in April-Nov 2008

Source from:  Press Trust of India 01/12/2009

New Delhi: India's tobacco exports, the third largest in the world, surged by 68% to reach Rs 2,213 crore in the first eight months of 2008-09 on better price realisation and the depreciation of the rupee. In volume terms, tobacco exports, comprising raw tobacco and its products, rose 20% to 1,60,511 tonne from April to November 2008 from 1,33,440 tonne in the same period the previous year, a senior Tobacco Board official said. "India exported tobacco worth Rs 2,213.38 crore between April and November against Rs 1,316 crore in the year-ago period," he said. Raw tobacco exports from the country soared to Rs 1,830.22 crore in the April-November period from Rs 976.60 crore in the same period last year. In volume terms, shipments rose to 1,42,172 tonne during the period from 1,16,184 tonne a year ago, he said.The country exported tobacco products worth Rs 383.16 crore during the April-November period in 2008 from Rs 339.40 crore a year ago. In volume terms, the shipments rose to 18,339 tonne, compared with 17,256 tonne, the official added. "High prices and a depreciation of the rupee supported exporters significantly during the period," he explained. Tobacco prices hit record highs due to a shortfall in output in some of the major producing countries, including China, last year. Prices of tobacco skyrocketed to a record average of Rs 84.85 per kg during auctions in Andhra Pradesh in 2008 against Rs 47.47 the previous year. Similarly, prices of the best quality tobacco in Andhra Pradesh spiralled to a record Rs 141 a kg against Rs 65 a kg in 2007."Tobbaco prices at Karnataka auctions, which started in September last year, shot up to an average of Rs 109 per kg till Thursday," he said. The weakening of the rupee boosted the profitability of the exporters. The rupee depreciated by over 23% to Rs 49.57 against the dollar between April 1 and November 30, 2008. Tobacco Board chairman J Suresh Babu said that exports may increase to $700 million (close to Rs 3,500 crore) in 2008-09, though shipments in volume terms may not rise significantly. India exported around 2.05 lakh tonneworth $503 million in 2007-08. Enditem