Small BusinessIndia's April-July tobacco exports surge by 39%
India"s exports surged by 39 per cent in value terms to Rs 1,366 crore during the first four months of this fiscal on better price realisation and higher demand, the Tobacco Board said.
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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 per kg now as compared to $2 per 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,the Board data showed.
In value terms, the export of unmanufactured tobacco rose to Rs 1,161 crore from 780.51 crore in the last year. The shipment of tobacco products also increased to Rs 204.96 crore from 56.77 crore during the review period, it said.
India, which produced about 310 million kilograms of tobacco in 2008-09 crop year, exports to major markets such as Europe, Vietnam, Belgium, Russia and Germany.