INTRODUCTION TO INDIAN
TOBACCO
The rich taste and smoothness of
Indian tobacco, developed in the 17th Century by Portuguese, is worldwide
appreciated. It's now a more and more popular and valued drug on the global
market of tobacco and has made its way into cigarettes developed in different
countries. In the world tobacco industry, India has an amazing and egalitarian
profile and is a significant commercial crop grown here. India is the world's
third biggest manufacturer and exporter of tobacco. Brazil and USA are ahead of India.
EXPORTS AND KEY MARKETS
• In 2018-2019, overall tobacco
exports and tobacco replacements produced amounted to US$ 981.33 million, and
in 2019-20 exceeded US$ 558.40 million (until October 2019). Indian tobacco is
exported in about 100 countries.
• India mainly exports to
Belgium, Korea, Nigeria, Egypt and Nepal unmanufactured tobacco. The major demand
for Indian tobacco exports is from Western Europe
TOBACCO BOARD
The Indian Tobacco Board supports
farmers, merchants and exporters of tobacco. The Board supports a thriving
organization with a profound social conscience and clear national engagement by
building synergies between these stakeholders. In order to maintain a
reasonable price for the commodity, the Board calculates the market and
controls the production of FCV Tobacco in line with market. The Tobacco Board
assists tobacco farmers in obtaining crop loans, quality seeds, fertilizers and
other essential materials. In turn, it urges GAP farmers to develop premium
tobacco goods to satisfy increasing market demand.
On the other hand, In a fair and
open climate the Board carries out auctions to market tobacco. On the export
sector, by carrying out brand building activities and engaging in foreign
tobacco trade shows, the Board aim to boost established markets and establish
new markets for Indian tobacco and tobacco goods. The Board supports trade
delegations to prospective countries of supply and welcomes delegations from
other Member States.
ASEAN
COUNTRIES OTHER THAN INDIA
Indonesia is one of the country which is largest in terms of population and tobacco industry. In Indonesia a population
of around 220 million and smoking prevalence rate was around 60%. It is also
the world’s fifth largest cigarette producer. In 2002, it had around 250 big
cigarette factories producing more than 220 billion sticks of clove cigarettes
or Kretek. The production of white cigarettes was very insignificant in
comparison to clove cigarettes. The
export of clove cigarettes was also significant, at around 20% of total
cigarette exports, and three-fourth went to Malaysia in that year. It is
because of cheap labor that Indonesia has become the heaven of many
multinational corporations that utilize the AFTA’s CEPT scheme to penetrate the
ASEAN market. For cigarettes, Indonesia became a net exporter. On the other
hand, a small amount of white cigarettes is imported by Indonesia from
non-ASEAN countries. Trade in raw tobacco is mainly with non-ASEAN countries
where the impact of AFTA is negligible.
The Philippines and Thailand
tales vary from the Indonesian reports. These two ASEAN countries have a total
tobacco industry lower than Indonesia. The large part of the tobacco industry
in Philippines consists of a number of private-owned factories and a
state-owned cigarette factory in Thailand – all these factories produce local
and foreign-brand cigarettes. The introduction of AFTA reduced domestic tobacco
prices. Thus, there has been a huge decline in real tobacco prices in recent decades.
In Philippines, Tobacco has had a
comparatively greater role than Thailand. It was a source of employment for
around two million people. Around three quarters of the supply of tobacco was
produced domestically, with the remainder exporting. Around 97% of production
served domestic demand and the rest was exported. While most cigarette
exportations have been carried out in non ASEAN- countries, the share of ASEAN
has steadily increased since 1995. The rise was even faster in 2003. In the
Philippines the CEPT AFTA program appears to profit. One of the explanations
for the improved share in overall cigarette consumption in the Philippines of
the manufacture of tobacco is a substantial decrease in the tariff rate. The
reduction in tariffs lowered the expense of ASEAN products and also lowered
local smokers 'output costs.
WARNING: SMOKING AND
VAPING CAN WORSEN COVID-19
The COVID-19 pandemic is an opportune time for smokers and vapers to
quit their addiction, says the Southeast Asia Tobacco Control Alliance
References:
Very nice blog ..
ReplyDeleteDoes Covid-19 will ruin tobacco export potential in India??
May be not....
ReplyDeleteEasy to understand content 👏👏
ReplyDeleteGood work, Keep it up
ReplyDelete