India's Tobacco Exports Seen Rising 12 Pct in FY10

Source from:  Reuters 08/03/2009

India's tobacco exports are likely to rise 12 percent to a record 251,000 tonnes in 2009/10 as farmers expanded area under the leaf crop to cash in on higher prices, a senior government official said on Friday. "There is surplus tobacco in India right now compared to last year. So surplus can go to export market only, because domestic market can not absorb it," J Suresh Babu, chairman of the Tobacco Board, told Reuters in an interview. "We are estimating 12 percent growth in volumes." In 2008/09, the country had shipped 224,404 tonnes of tobacco. "In value terms growth would be marginal. Exports realisation is coming down," Babu said. India is the second biggest producer of tobacco after China and the fourth-biggest exporter of unmanufactured tobacco. Global tobacco companies British American Tobacco , Japan Tobacco Inc. <2914.T>, Philip Morris International and Imperial Tobacco Plc are the main buyers of Indian leaf. ITC , Godfrey Phillips India Ltd and Vazir Sultan Tobacco are leading Indian buyers. Enditem