India Tabacco Export Market

Indian tobacco, introduced by Portuguese in the 17th century, is appreciated worldwide for its rich, full-bodied flavour and smoothness. It is now an increasingly well-known and respected commodity in global tobacco markets and has found its way into cigarettes manufactured in several countries. India has an impressive and progressive profile in the global tobacco industry, and it is an important commercial crop grown here. India is the second-largest tobacco producer and exporter in the world.

 

Tobacco is the common name of several plants in the Nicotiana genus and the Solanaceae (nightshade) family, and the general term for any product prepared from the cured leaves of the tobacco plant. More than 70 species of tobacco are known, but the chief commercial crop is N. tabacum. The more potent variant N. rustica is also used in some countries.

 

Dried tobacco leaves are mainly used for smoking in cigarettes and cigars, as well as pipes and shishas. They can also be consumed as snuff, chewing tobacco, dipping tobacco and snus.

 

Tobacco contains the highly addictive stimulant alkaloid nicotine as well as harmala alkaloids. Tobacco use is a cause or risk factor for many deadly diseases; especially those affecting the heart, liver, and lungs, as well as many cancers. In 2008, the World Health Organization named tobacco use as the world's single greatest preventable cause of death.

 

 

Total export of tobacco and manufactured tobacco substitutes stood at US$ 904.87 million in FY20. Indian tobacco is exported to around 100 countries.

 

Total export of unmanufactured tobacco stood at US$ 570.30 million in FY19 and reached US$ 530.0 million in FY20.

 

The total export of flue-cured Virginia (FCV) tobacco in January 2021, was US$ 19.5 million, while for a period from April to January 2021, it was US$ 303.7 million.

 

The tobacco export in the month of February 2021, was US$ 69.15 million and the total export during April 2020 to February 2021 was US$ 789.57 million.

 

India export unmanufactured tobacco primarily to Belgium, Korea, Nigeria, Egypt and Nepal. Western Europe is a key market for Indian tobacco export.

 

In August 2020, the parliamentary panel proposed permitting regulated foreign direct investment in India’s tobacco production and cigarette manufacturing to stimulate agricultural exports.

 

The panel proposed establishment of tobacco farms dedicated to exports only to improve outward shipments and to provide benefits to farmers. It also suggested to provide export incentives for tobacco and tobacco products.

 

The Tobacco Board of India is a facilitator for tobacco growers, traders and exporters. By creating synergies between these stakeholders, the Board fosters a vibrant enterprise, with a deep social conscience and strong national commitment. The Board estimates demand and regulates the production of FCV tobacco to match demand to ensure a fair price for the produce. It assists tobacco farmers in securing crop loans, quality seeds, fertilizers and other critical inputs, and also counsel’s farmers on GAP to produce quality tobaccos to meet the evolving international demand. In addition, the Board conducts auction for the sale of tobacco in a competitive and transparent environment. 

On the export front, the Board strives to improve the existing markets and develop new markets for Indian tobacco and tobacco products by undertaking brand building exercises and participation in international tobacco exhibitions. The Board sponsors trade delegations to potential importing countries and invites delegations from other countries.

 

Bans on tobacco advertising to lower consumption

 

Comprehensive bans on tobacco advertising, promotion and sponsorship can reduce tobacco consumption.

 

A comprehensive ban covers both direct and indirect varieties of promotion.

 

Direct forms include, among others, advertising on television, radio, print publications, billboards and more recently in various social media platforms.

 

Indirect forms include, among others, brand sharing, brand stretching, free distribution, price discounts, point of sale product displays, sponsorships and promotional activities masquerading as corporate social responsibility programmes. 

 

Tobacco taxes are the most cost-effective way to reduce tobacco use and health care costs, especially among youth and low-income people, while increasing revenue in many countries.

 

The tax increases need to be high enough to push prices up above income growth. An increase of tobacco prices by 10% decreases tobacco consumption by about 4% in high-income countries and about 5% in low- and middle-income countries.

 

Despite this, introducing high tobacco taxes is a measure that is least implemented among the set of available tobacco control measures.

 

Tobacco users need help to quit, Studies show that few people understand the specific health risks of tobacco use. However, when smokers become aware of the dangers of tobacco, most want to quit. Without cessation support only 4% of attempts to quit tobacco will succeed.

 

Professional support and proven cessation medications can more than double a tobacco user's chance of successful quitting.  

 

Second-hand smoke kills

 

Second-hand smoke is the smoke that fills enclosed spaces when people burn tobacco products such as cigarettes, bidis and water-pipes.

 

There is no safe level of exposure to second-hand tobacco smoke, which causes more than 1.2 million premature deaths per year and serious cardiovascular and respiratory diseases.

 

Almost half of children regularly breathe air polluted by tobacco smoke in public places, and 65 000 die each year from illnesses attributable to second-hand smoke.

 

In infants, it raises the risk of sudden infant death syndrome. In pregnant women, it causes pregnancy complications and low birth weight.

 

Smoke-free laws protect the health of non-smokers and are popular, as they do not harm business and they encourage smokers to quit.

 

Pictorial health warnings work

 

Large pictorial or graphic health warnings, including plain packaging, with hard hitting messages can persuade smokers to protect the health of non-smokers by not smoking inside the home, increase compliance with smoke-free laws and encourage more people to quit tobacco use.

 

Studies show that pictorial warnings significantly increase people's awareness of the harms from tobacco use.

 

Mass media campaigns can also reduce demand for tobacco by promoting the protection of non-smokers and by convincing people to stop using tobacco. 

 

Warnings

 

Tobacco kills up to half of its users.

 

Tobacco kills more than 8 million people each year. More than 7 million of those deaths are the result of direct tobacco use while around 1.2 million are the result of non-smokers being exposed to second-hand smoke.

 

Over 80% of the world's 1.3 billion tobacco users live in low- and middle-income countries.

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