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Surge in Tobacco Prices

Tobacco

Tobacco farmers in Andhra Pradesh are set to benefit after crop yields in Brazil, Zimbabwe and Indonesia declined due to droughts and untimely rainfall.

  • China imposed restrictions on tobacco exports to protect its local cigarette industry.
Tobacco
[Ref: Business Standard]

About Tobacco:

  • Tobacco is recognized for its drought tolerance and robust nature. It is a crop that matures quickly.
  • This crop can be grown on soils that are not suitable for other agricultural uses.
  • It thrives in temperatures ranging from 20° to 27°C.
  • Tobacco requires at least 500 mm of rainfall during its growing period. However, it does not grow well in areas where rainfall exceeds 1200 mm.
  • While it grows best in sandy or sandy loam soils, in Andhra Pradesh, tobacco is successfully cultivated on heavy black soils.

Tobacco in India:

  • India is the second largest producer and exporter of tobacco in the world, following China and Brazil.
  • Tobacco cultivation spans 0.45 million hectares, which is about 0.27% of the total cultivated area in India. This results in a yield of 750 million kg of tobacco.
  • Specifically, Flue-cured Virginia (FCV) tobacco is produced on 0.20 million hectares with a yield of 300 million kg.
  • Non-FCV tobacco, which includes other varieties, is produced on 0.25 million hectares, yielding 450 million kg.
  • Tobacco farming is crucial for the livelihood of 36 million people in India. It contributes 4% to the agricultural exports and 10% to the total excise revenue.
  • The main varieties of tobacco grown in India include:
  • FCV (predominantly in Andhra Pradesh & Karnataka),
  • Bidi Tobacco (mainly in Gujarat, Karnataka & Andhra Pradesh),
  • Cigar & Cheroot (in Tamil Nadu & West Bengal), and
  • Pikka Tobacco (in Orissa).

Ref: Source

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