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Exports touch Rs4,373 crore; reach total volume of 2,57,469 tonnes in the last fiscal
Indias tobacco exports surged 29% to reach Rs4,373 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 exportscomprising raw tobacco and its productsrose by 14% to 2,57,469 tonnes in FY2010 from 2,24,867 tonnes in the previous fiscal, a senior Tobacco Board official said, reports PTI. The shipments rose both in value and volume terms. India exported tobacco worth Rs4,373 crore in the 2009-10 fiscal against Rs3,388 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 official 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 Rs748.95 crore worth of tobacco products like cigarettes and Rs3,624 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 tonnes, while unmanufactured tobacco shipments totalled 2,27,697 tonnes in the review period, it said.

The shipment of FCV tobacco, the major export variety, increased in volume to 1,73,701 tonnes from 1,50,174 tonnes during the period, it added.

The board said that tobacco was exported largely to Belgium, Russia, South 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.

The harvesting season varies in Andhra Pradesh and Karnataka, the two biggest tobacco producing States in India. At present, tobacco is being harvested in Andhra Pradesh.
Production, imports, exports and sales of tobacco products by administrative territory, statistical indicator and year 2002 Republic of Lithuania Index of cigarettes products Imports of tobacco products, tonnes Exports of tobacco products, tonnes Retail sales, LTL million 81 1 732 3 685 400.1 2003 79 1 603 3 627 438.9 2004 126 2 178 5 062 409.1 2005 202 3 270 16 010 460.5 2006

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55% increase in Indias Tobacco Export
India has witnessed an unforeseen increase in its tobacco exports, which has escalated by 55% to reach at $169 million in first quarter of 2008/09. The shortfall at the international level has forced the global buyers to source indian leaf at a higher price. Mr. J Suresh Babu, the chairman of the Tobacco Board said, "Exporters are buying aggressively. There is a shortfall in production globally. Production in Brazil is down, in Zimbabwe it is steady". Many big companies are showing their interest in purchasing tobacco at higher quantities from india and thanks to which the countrys 2008-09 exports could touch the mark of $600 million, which is 19 per cent more than from $503 million of last year. The april-june figure of 2008 shows that there has been considerable increase in the export of tobacco as compare to the last year figure of the same period. During this time period export has been recorded at $169 million, which was $109 million in the same period a year ago. The British American Tobacco, Japan Tobacco Inc, Philip Morris International and Imperial Tobacco Plc have been recognized as the countrys main buyers. The senior official quoted that "Exporters are buying aggressively. There is a shortfall in production globally". India exports nearly 55 per cent of the total Flue Cured Virginia (FCV) yield and the rest is available for consumption in the domestic marketplace. FCV is the top notch quality which is used for making cigarettes. The impact of rising exports got visible in the profit level of domestic cigarette makers. The increasing level of the exports have triggered the prices of tobacco which in turns has trimmed the profit of domestic cigarette makers. Mr. Babu remarked that "Considering exports, I think prices will stay at this level in rest of the year." After China, India is worldwide acknowledged as the second biggest producer of tobacco and known as the fourth biggest exporter of unmanufactured tobacco. Mr. Bellam Kotaiah, president of the Indian Tobacco Association clarified that the international buyers are paying around 50 per cent-70 per cent more as compare to what they were paying last year and it is reflected in the export figure. Further he added that the "Last year the average price was around $2.3 a kg. This year it has gone up to $4," The leading domestic buyers of tobacco are ITC Ltd, a Kolkata based company, Godfrey Philips India Ltd and Vazir Sultan Tobacco.

For keeping the surging rising trend of tobacco exports intact, the tobacco board has come up with new introductory methods with a sole aim of increasing the height of Indias tobacco industry in throughout the world. In india, tobacco growers are registered under the tobacco board which is regulating the sector. In amidst of the concerns related to the the growing areas under tobacco, the tobacco board has issued a warning to the farmers against all types of illegal cultivation of the crop. The board has clarified that any plantation done in the unauthorized field will be destroyed. Tobacco board Chairman said "We have cautioned farmers that they should not resort to unauthorized farming, otherwise, we will destroy such crops". He said that "It is natural on the part of farmers to increase acreage after the tobacco prices hit through the roof this year. But we are vigilant. Acreage in Karnataka has shot up to about 80,000 hectares against 75,000 hectares last year. However, plantation in Andhra will start in September." Farmers in different parts of the india are more vigorously getting back to the tobacco cultivation after a massive increase in prices at domestic level followed by the major spurt in nations exports, greatly boosted by the shortfall of production in major overseas markets like china. In 2008, Indian tobacco prices have seen a shoot up from the range of 2-6.5 dollars/kg as compare to what was remain in between 80 cents and four dollars a kg in 2007. Caught up in this high worldwide demand, in Andhra Pradesh prices of best quality tobacco has been increased from Rs 65 in 2007 to reach at Rs 141 per kg in 2008. The price of average quality tobacco has also seen an increase from last year Rs 47.47 to this year Rs 84.85. A Glimpse of the India's Tobacco Industry India is exporting tobacco in more than 80 nations, over all continents. At present the industry is providing livelihood to more that 25 million people in India. Out of the total tobacco items exported from india, unmanufactured tobacco shares around 80 per cent to 85 per cent of the export while the manufactured tobacco products hold around nearly 20 per cent to 25 per cent. In the unmanufactured tobacco exports, Flue Cured Virginia tobacco accounts to the single largest item with nearly 75 per cent to 80 per cent export. The other exported varieties are- Burley, HDBRG, Natu, DWFC, Top leaf and Jutty. All these are used for making cigarettes. Non cigarette tobacco exported worldwide are Lalchopadia, Judi, Rustica. These are used for chewing and making bidis. Around 8 per cent to 10 per cent non- cigarette tobacco is exported in throughout the world. Contrary to international trends, non cigarette tobaccos are the dominated item in the nations export. The current situation in the international tobacco market is proved to emerge out as the favorable market for the indian tobacco export. The prices of brazilian export have almost equalized the most expensive american tobacco cost. Zimbabwean farm prices have also seen an upward trend. There are several advantages which can be put forth for favoring the indian tobacco. Like low unit production cost, average export prices of indian tobacco FCV, which are found more competitive than that of the prices of Brazil, USA, Zimbabwe. ..

Tobacco exports rise 29%


Press Trust Of India / New Delhi April 29, 2010, 0:53 IST

Indias tobacco exports surged 29 per cent to Rs 4,373 crore in the 2009-10 following 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 per cent to 257,469 tonnes in this financial year from 224,867 tonnes in the previous financial year, a senior Tobacco Board official said. The shipments rose both in value and volume terms. India exported tobacco worth Rs 4,373 crore in 2009-10 against Rs 3,388 crore in the same period last year, he said. According to the official, the export of tobacco surged as lower production in countries such as Europe and the US boosted global demand. He further added that The rise in exports was also due to higher price realisation for Indian tobacco. The average export price for our tobacco was $3 a kg in this financial year as against $2.50 a kg in the previous financial year. Meanwhile, Tobacco Board said that this year 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 volume terms, exports of tobacco products stood at 29,772 tonnes, while unmanufactured tobacco shipments totaled 2,27,697 tonnes in the review period. The shipment of FCV tobacco, the major export variety, increased in volume to 1,73,701 tonnes from 1,50,174 tonnes. Tobacco was exported largely to Belgium, Russia, Korea, 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.

.. Tobacco is an important commercial crop grown in India. It occupies the third position in the world with an annual production of about 725 Million Kgs. Of the different types grown, flue-cured tobacco, country tobacco, burley, bidi, rustica and chewing tobacco are considered important. India, as an exporter of tobacco, ranks sixth in the world next to Brazil, China, USA, Malawi and Italy. Tobacco and tobacco products earn a whopping annual sum of about Rs.10271 crores to the national exchequer by way of excise revenue, and Rs.2022 Crores (2006-07) by way of foreign exchange. Furthermore, tobacco is a source of gainful employment. Several lakhs of people thrive on this weed crop. Flue-cured growth, with an annual production of about 300 million Kgs, is the singular type, which contributes huge amount of forex and excise earnings. More or less, 50% of the FCV tobacco produced is consumed domestically while the rest is exported to more than 100 countries across the globe. Other tobacco types viz., Burley, Country tobacco, Chewing tobaccos (Lal chopadia, Judi and Rustica) are also exported whereas bidi tobacco - a poor man's smoke - is consumed only within the country. Flue-cured Virginia tobacco is the principal type grown in the states of Andhra Pradesh and Karnataka under varied agro-climatic conditions. It is grown in the light soils of Karnataka as rain-fed crop and in the heavy soils of Andhra Pradesh under conserved moisture in the aftermath of Southwest monsoon rains. The crop is grown under irrigated conditions in the Northern Light Soils (NLS) of Andhra Pradesh and Eastern Light Soils (ELS) of Orissa and as a semi-monsoon crop in Southern Light Soils (SLS) of Andhra Pradesh. Thus, India is endowed with a vast potential to produce different types of tobacco so as to cater to the interests of the discerning customers. The Govt. of India established the Tobacco Board under an Act of Parliament in the year 1975 (brought to effect from 1.1.1976) and opened its head quarters at Guntur, Andhra Pradesh with a view to bring about an all-round development to the tobacco industry. SO 9001:2008 Certification to Indian Tobacco Board The Indian Tobacco Board, in furtherance of its objectives strive to provide superior service to its customers namely, growers and traders in a systematic manner. M/s. Det Norkse Veritas (DNV), Netherlands bestowed the honour of ISO 9001:2008 certificate to the Indian Tobacco Board for establishing quality management systems. The Tobacco Board has implemented systems aimed at achieving product integrity and traceability, model project area and quality circles concept to improve the quality of tobacco leaf so as to meet the specifications of importers. The Board, committed to meeting the needs of customers, advises all the Indian exporters to obtain ISO certification with a view to meet the expectations of the global market. .
TOBACCO BOARD-GUNTUR 2011 Andhra Pradesh Auction - Initial Auction Report Grade Out-turn Bright Grades Medium Grades Low Grades Name of the Auction Platform Keesara Thorredu Devarapalli-1 J.R.Gudem-1 Vellampally-1 Ongole-1 Podili-2 Podili-1 Ongole-2 Tangutur-1 Kondepi Kandukur-1 Kandukur-2 Kaligiri D.C.Palli Koyyalagudem Vellampally-2 J.R.Gudem-2 Gopalapuram Tangutur-2 Grand Total Quantity Authorized (M.Kgs.) 6.31 6.51 9.13 10.29 6.17 8.85 8.03 11.82 10.09 6.86 9.18 6.90 10.68 6.92 8.02 8.68 6.36 10.86 9.92 5.07 166.65 Quantity Marketed (M.Kgs.) 0 0 0 Cumulative Total Bales Marketed 0 0 0 0 0 0 149 110 0 0 0 27 18 84 284 0 0 0 0 0 672 Cumulative Quantity Marketed (Kgs.) 0.00 0.00 0.00 0.00 0.00 0.00 20088.50 15012.60 0.00 0.00 0.00 3891.20 2261.30 12852.00 40550.00 0.00 0.00 0.00 0.00 0.00 94655.60 Start Auction year:2011 Day:4 % share 93.77 6.23 0.00 Cumulative Average Price (Rs./Kg) 0.00 0.00 0.00 0.00 0.00 0.00 117.64 118.89 0.00 0.00 0.00 119.14 117.00 112.80 116.28 0.00 0.00 0.00 0.00 0.00 116.64 Average Price (Rs. / Kg.) 117.44 104.04 0.00 End Date Of Auction (d-m-y)

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