Tobacco Exports Up 29% on Higher Global Demand

Source from:  Press Trust of India 04/29/2010

New Delhi: India's tobacco exports surged 29% to reach Rs 4,373 crore in the 2009-10 fiscal on higher demand from Europe and the US. India is the third largest tobacco exporter in the world. In volume terms, tobacco exports-comprising raw tobacco and its products-rose by 14% to 2,57,469 tonne in FY2010 from 2,24,867 tonne in the previous fiscal, a Tobacco Board official said. "The shipments rose both in value and volume terms. India exported tobacco worth Rs 4,373 crore in the 2009-10 fiscal against Rs 3,388 crore in the same period last year," he said. The export of tobacco surged as lower production in countries such as Europe and the US boosted global demand, the official said. The board further said, "The rise in exports was also due to higher price realisation for Indian tobacco. The average export price for our tobacco was $3 per kg in FY2010 as against $2.50 per kg in FY2009." India shipped Rs 748.95 crore worth of tobacco products like cigarettes and Rs 3,624 crore worth of unmanufactured tobacco like flue-cured Virginia (FCV) tobacco in FY2010, the board said. In volume terms, exports of tobacco products stood at 29,772 tonne, while unmanufactured tobacco shipments totaled 2,27,697 tonne in the review period, it said. The shipment of FCV tobacco, the major export variety, increased in volume to 1,73,701 tonne from 1,50,174 tonne during the period, it added. The board said tobacco was exported largely to Belgium, Russia, Korea, the Netherlands and South Africa. Tobacco production in the country is likely to touch 335 million kg in the 2009-10 season, against 317 million kg in the previous year, it added. Enditem