Tobacco production set to rise

Font Size

Print

Feedback

Email

Discuss

• Shopping Festival

Related Articles

Import of fodder seeds likely: PawarPolicy vacuum, supplies behind vegetable inflationIndia deposits rice, wheat seeds in Svalbard Vault

Mumbai, May 1: India’s 2005 unmanufactured tobacco production is estimated to increase by 2% to 6,80,000 tonne (farm sales weight basis), due to better returns for cigarette-type tobaccos and increasing domestic consumption. On the other hand, total consumption is expected to be at 493,230 tonne, up marginally from 491,230 tonne in 2004.

Cigarette-type tobaccos (mostly Flue Cured Virginia (FCV) and Burley) constitute about 31% of the total tobacco production. According to Global Agriculture Information Network (GAIN), India’s 2005 FCV crop is expected to be up 30% at 2,32,000 tonne, mainly due to increased yield and a 16% increase in planted area, a result of excellent monsoon rains in the major growing tracts of Andhra Pradesh and Karnataka.

Increased investments in processing infrastructure, and consistently better returns from tobacco compared to competing crops are encouraging farmers to grow tobacco, despite the marketing problems they faced last year due to lower quality.

Burley production for 2005 is estimated to increase to 9,900 tonne due to better export demand and higher prices in 2004.

The Burley planted area, which dipped to 6,500 hectare during 2004, is estimated to have bounced back to 12,500 hectare during 2005 to replenish lower 2004 stocks. The Tobacco Board, a quasi-governmental agency, regulates the production and marketing of FCV tobacco.

For the current season, the Board established a production ceiling of 1,11,000 tonne for Andhra Pradesh and 67,000 tonne for Karnataka, responding to demands from the trade and farmers. However, according to current indications, actual production is likely to exceed the Board’s ceiling.

There is little government subsidy for tobacco production, with the exception of the subsidy provided to transport coal used for tobacco curing, and for the construction of curing barns in non-traditional cigarette tobacco growing areas. The government also supports tobacco research and extension work.

Total domestic FCV consumption in 2005 is expected to rise 7.9% to 82,070 tonne. Tobacco consumption by the cigarette industry is estimated at 1,02,000 tonne in 2004, compared with 98,000 tonne in 2003.