To find new markets for tobacco exports, the Commerce Ministry has asked the External Affairs Ministry to issue instructions to Indian Embassies for exploring opportunities in those countries.
The government explores new markets on a continuous basis for all agri products, including Flue Cured Virginia (FCV) tobacco, Minister of State for Commerce and Industry Nirmala Sitharaman said in a written reply dated December 1.
"In this connection, the Ministry of Commerce and Industry...Has taken up with the Ministry of External Affairs requesting them to issue necessary instructions to Indian Embassies abroad to explore opportunities to export tobacco to those countries," she said in the reply released today.
Demand for tobacco, the Ministry added, is mostly from tobacco consuming nations and Indian missions there have been at the "forefront" of organising, arranging meetings for Indian tobacco delegations with foreign importers and organising byers-sellers meet.
Tobacco exports during April-September this fiscal were worth USD 444.11 million.
India mainly exports tobacco to the US, Russia, Belgium, Korea and Egypt.
The production of export worthy FCV tobacco in India was 293.55 million kg in 2014-15, down from 315.95 million kg in the previous year. The production was 270.5 million kg in 2012-13 and 266.99 million kg in 2011-12.
The FCV tobacco which is export worthy and constitutes around 37 per cent of overall tobacco cultivation of around 800 million kg is a highly regulated crop.
It is subjected to stringent restrictions on extent of area planted, quantity of tobacco produced and cured by the Tobacco Board.
In another reply, the Minister said the merchandise trade deficit relates in large measures to country's dependence on import of petroleum.
"In the recent period prices of petroleum have come down and as a result the merchandise trade deficit has also come down. The gap is bridged by a positive net export of services and net capital inflows," Sitharaman said.
Trade deficit during April-October 2015-16 was USD 77.3 billion.
