India’s tobacco exports surpassed Rs.12005.89 crore during 2023-24. Tobacco farmers’ income has also doubled over the last five years, the Ministry of Commerce said on Wednesday.

The ministry said the Tobacco Board has undertaken several strategic activities to ensure sustainability and growth of the tobacco industry. These include crop planning and regulation of production to meet both domestic and export demands.

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The Board supports farmers by providing handholding assistance to produce tobacco of requisite quality to meet the standards of importing countries. The Tobacco Board was established on 1st January 1976 by an Act of Parliament “Tobacco Board Act, 1975 (Act 4 of 1975)” for the overall development of the tobacco industry.

The primary role of the Board is to ensure the smooth functioning of the farming system and to ensure fair and remunerative prices for tobacco farmers and the promotion of exports. Financial assistance is extended to farmers through banks, along with the necessary inputs for the production of quality tobacco. The Board also engages in extension and developmental activities to promote sustainable tobacco cultivation practices.

India is the 2nd largest producer of tobacco in the world after China and the 4th largest producer of FCV tobacco after China, Brazil and Zimbabwe. The country is the second largest exporter of unmanufactured tobacco (in terms of quantity) after Brazil. Tobacco exports contribute sizable foreign exchange to the Indian exchequer.

To ensure better price discovery and secure remunerative prices for farmers, the Tobacco Board has implemented an IT-enabled electronic auctioning system for FCV tobacco. Additionally, export promotion activities are carried out to sustain and improve India’s tobacco exports. Welfare measures are extended to tobacco farmers, providing financial relief in the form of grants and loans during times of need.

The 2023-24 crop season has turned out to be a remarkable year for FCV (Flue-Cured Virginia) tobacco farmers across Andhra Pradesh. Despite facing natural calamities, the farmers’ determination and resilience resulted in a record-high production of 215.35 million kg kilograms of tobacco. The surge in international demand for Indian FCV tobacco this year has played a pivotal role in achieving these unprecedented figures.