Tobacco exports up 6% to Rs 1,162 cr

Aided by better than anticipated production, the country's exports of raw tobacco and tobacco products went up six per cent to touch Rs 1,162 crore in 2003-04, according to statistics available with the Tobacco Board.

Raw tobacco exports were valued at Rs 816.62 crore and tobacco products at Rs 345.56 crore.

"This is the best ever export performance by the tobacco sector and is more than the Rs 1,061 crore worth of exports it recorded in 1997-98," Tobacco Board chairman P Dayachari, told Business Standard.

Exports of raw tobacco and tobacco products touched 1,47,628 tonnes, an increase of 16 per cent in quantity terms.

Furnishing statistics, Dayachari said that the export of raw tobacco during 2003-04 was recorded at 1,25,896 tonnes and that of tobacco products at 21,732 tonnes.

During 2002-03, raw tobacco exports totalled 1,07,715 tonnes (Rs 770.62 crore) and tobacco products 19,842 tonnes (Rs 325.33 crore).

As against the target of 97,000 tonnes (Rs 680 crore) envisaged by the Tobacco Board for export of raw tobacco during 2003-04, the industry achieved 1,25,896 tonnes, he said.

Raw tobacco exports increased 17 per cent in volume terms and six per cent in value terms when compared to 2002-03 exports. In the case of tobacco products, the industry export figures touched 21,732 tonnes as against the target of 18,000 tonnes (Rs 300 crore), he said.

Dayachari pointed out that the quality of Indian tobacco had reached international standards.

"Indian tobacco today contains very low levels of nicotine and there is no trace of tobacco specific nitrosamines (TSNA), which are harmful. The government has aggressively marketed the crop in Russia, CIS countries and Africa," Dayachari said.

Exporters this time made a dent into the cigarette markets of south and central American nations.

As India exported the best filler type tobacco, suitable for any cigarette blend, foreign customers seem to have accepted it without reservations.

However, the North American Free Trade Association (Nafta), which imposed Tariff Related Quantitative restrictions (TRQ), allotted a meagre quota of 1,500 tonnes to 42 miscellaneous countries.

India being one of the 42 countries in the list, tobacco exports to the US came down.

The jump in exports of cut tobacco and cigarettes by about 52 per cent and 29 per cent respectively swelled export figures of tobacco products from our country during 2003-04.

Export of chewing tobacco also increased by 20 per cent. However, export of bidis in value terms and hookah tobacco paste in quantity terms declined by seven per cent and six per cent respectively.

"Western Europe has emerged as the leading customer for our raw tobacco during 2003-04. It imported 48,134 tonnes of tobacco valued at Rs 375.71 crore, representing 38.23 per cent of the total exports," Dayachari said.