TEA BOARD IN INDIA:
GEOGRAPHY
NEWS: Tobacco Board
focuses on sustainability and growth of the industry; exports reach 12,005
crores in 2023-24
WHAT’S IN THE NEWS?
The Tobacco Board of India has undertaken several
strategic measures to ensure the sustainability and growth of the tobacco
industry, which plays a vital role in India's economy as a significant
agricultural commodity and export contributor.
Key Initiatives by the
Tobacco Board
a) Crop Planning and
Production Regulation
- Aligns production with domestic consumption and export demand
to prevent oversupply or shortages.
- Regulates the area under tobacco cultivation and ensures balanced
production for sustainability.
b) Farmer Support
- Provides handholding assistance to farmers for producing
high-quality tobacco that meets export standards.
- Educates farmers on best agricultural practices to improve
yield and quality.
c) Promotion of
Exports
- Carries out various export promotion activities to sustain
and improve global demand for Indian tobacco.
- Leverages an IT-enabled electronic auctioning system to
ensure better price discovery, transparency, and fair pricing for farmers.
India’s Tobacco
Industry at a Glance
a) Global Rankings
- 2nd Largest Producer of tobacco after China.
- 4th Largest Producer of Flue-Cured Virginia (FCV) Tobacco,
used in high-quality cigarettes, after China, Brazil, and Zimbabwe.
- 2nd Largest Exporter of unmanufactured tobacco in quantity,
after Brazil.
b) Economic
Contribution
- The tobacco industry contributed Rs. 12,005.89 crore to
the Indian exchequer through exports in 2023-24, making it a key revenue
generator.
About the Tobacco
Board of India
a) Overview
- Statutory Body: Established under the Tobacco Board
Act, 1975 (Act 4 of 1975).
- Functions under the Ministry of Commerce & Industry.
b) Functions
- Regulates and promotes the production of Flue-Cured Virginia
(FCV) tobacco, a primary export variety.
- Enhances the export potential of Indian tobacco by maintaining
high-quality standards.
- Supports farmers by providing technical assistance and
infrastructure for improved tobacco quality.
- Facilitates the adoption of technology and systems like e-auction
platforms for better price realization and efficiency.
Significance of the
Initiatives
- Economic Benefits:
- Ensures the growth of a key agricultural commodity that
contributes significantly to India’s GDP and export revenue.
- Farmer Welfare:
- Improves the livelihoods of farmers by ensuring fair prices and
high-quality production.
- Global Standing:
- Strengthens India’s position as a major player in the global
tobacco market.
- Sustainability:
- Balances production to meet demand without over-exploitation of
resources.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=2089182#:~:text=The%20effective%20Government%20policies%20and,6%2C408.15%20crore%20in%202019%2D20.