India’s exports surged 39 per cent in value terms to Rs 1,366 crore during the first four months of this financial year on better price realisation and higher demand, the Tobacco Board said. The country had shipped tobacco worth Rs 982.87 crore in the same period last year, it said.
“A spurt in global demand owing to a production shortfall in major growing countries like Europe, has made Indian tobacco competitive on the price front,” a senior Board official said.
Indian tobacco is quoting on an average $3.15 a kg now as compared to $2 a kg in the last year, he said. Besides, Europe is also buying more tobacco from India as its farmers have reduced the cultivation due to high cost of production owing to the phase-out of farm subsidies, the official said. India exports tobacco leaf as well as ready products such as cigarette, cigars, bidi and hookah. The volume of exports rose marginally to 81,696 tonnes during April-July, 2009-10, compared with 80,571 tonnes in the same period last year.
