INDIAN TOBACCO INDUSTRY AT A GLANCE IN 2022 - 2023
India is the second largest tobacco producer behind China. The country has around 0.45 million hectares of area under tobacco cultivation. About 10% of the total area under tobacco cultivation is in India. Globally, it accounts for 9% of the total tobacco production. The average production for tobacco crops was around 800 million kg. India currently produces various types of tobacco: flue-cured Virginia tobacco, country tobacco, burley tobacco, bidi tobacco, rustica tobacco, hookah, cigar rapped, Cheroot, Burley, Oriental, Chewing tobacco, etc.
The tobacco industry of India employs about 36 million people in farming, labour activities, manufacturing, processing and export activities.
Tobacco Manufacturing StatesIndia's major tobacco manufacturing states are Gujarat, Andhra Pradesh, Uttar Pradesh, Karnataka, West Bengal, Telangana and Bihar. Gujarat, Andhra Pradesh and Uttar Pradesh account for around 45%, 20% and 15% of the country's total production respectively. Karnataka accounts for around 8% and the rest of the states account for about 2-3% of the country’s total tobacco production.
Tobacco ExportsExports of tobacco from India stood at US$ 1.21 billion in FY23. India is the second largest exporter of tobacco behind Brazil. It exports various types of tobacco and tobacco products.
The value of the total FCV tobacco exports during 2022 was US$ 359 million (Rs. 2,858 crore). The country exported 27,742 tonnes of tobacco products.
India exports to more than 115 countries throughout the world. India exports tobacco mainly to Belgium, the Philippines, Egypt, Arab Republic, Germany, Nepal, the USA, Turkey, and many more countries worldwide. Belgium is the biggest importer of tobacco at around 17% of the total exports from India. Egypt, Arab Republic and the Philippines are one of the largest tobacco export destinations for India importing around 13% and 12% of the total. India also exports tobacco to Indonesia, France, UAE, Russia, Korea, Sri Lanka, Malaysia, Venezuela, Ethiopia and Nigeria.
During 2022, India exported US$ 164.8 million worth of tobacco to Belgium. UAE is among the top importers of tobacco from India, with 2022 imports valued at US$ 134.6 million. The value of exports to Singapore and the US during the same period was US$ 34.3 million and US$ 31.7 million, respectively. Some of India's other tobacco export destinations, i.e. Netherlands and Germany, imported US$ 25.7 million and US$ 15.2 million worth of tobacco from India during 2022, respectively.
