The tobacco industry in India has performed brilliantly in 2023-24, with exports crossing ₹12,005.89 crore. This clearly shows that the sector has not only made its strong presence in the global market, but farmers’ income has also increased significantly.
Role of Tobacco Board:
The Tobacco Board, which was established on 1 January 1976 under the “Tobacco Board Act, 1975”, has played a key role in this success. Its main objective is to ensure fair and remunerative prices to tobacco farmers and promote the overall development of the industry.
The Board provides assistance to farmers for high quality tobacco production so that they can meet the standards of importing countries. Apart from this, financial assistance and necessary materials are also made available to the farmers through banks.
Relief and innovations for farmers:
The Board has introduced an IT-enabled electronic auction system for Flue-Cured Virginia (FCV) tobacco farmers. This ensures better pricing and remunerative prices to the farmers. Along with this, various promotional activities are also being done to promote tobacco exports.
2023-24: A record year:
The year 2023-24 was extremely successful for the FCV tobacco farmers of Andhra Pradesh. Despite natural calamities, the farmers produced a record production of 215.35 million kg of tobacco. The increasing demand for Indian tobacco in the international market further encouraged this success.
India’s position:
India is the second largest producer of tobacco after China and second only to Brazil in exports (by volume) of unmanufactured tobacco. India also ranks fourth in the production of flue-cured Virginia tobacco, after China, Brazil and Zimbabwe.
Contribution to the international market:
Tobacco exports contribute significantly to the Indian economy in foreign exchange. This money is not only invested in the development of the tobacco industry but is also used in welfare and relief schemes for farmers.
The Tobacco Board is encouraging farmers to adopt organic farming and maintain soil fertility. Sustainable farming practices are being promoted in view of the increasing effects of climate change. Despite the health and environmental impacts of tobacco, the industry is still a major source of income for the Indian economy.
Will this success lead the tobacco industry to a new era, or will it face challenges in the times to come due to health concerns? What are your views?
