India is discouraging cultivation and production in the tobacco farming sector, where income from exports has nearly doubled in the past five years. The reason behind the government’s decision is India’s obligation as a signatory to the WHO’s Framework Convention on Tobacco Control (FCTC), which calls for limiting the use of tobacco.
According to government sources, 65% of the tobacco grown is Flue-cured Virginia (FCV), primarily used for making cigarettes. The remaining 35% is produced in the unorganised sector and used in Khaini, Bidi, and Gutkha, with oversight from respective state governments and forest departments.
Efforts are underway to transition tobacco farmers to alternative cash crops like ginger, corn, banana, and areca nut. However, government sources point out that the biggest challenge in shifting tobacco farmers is matching the current remuneration they receive from tobacco cultivation.
Among the alternatives being promoted, areca nut is also carcinogenic, though India remains a net importer of it. Earnings for FCV tobacco farmers have more than doubled, from ₹124 per kg in FY 2019-20 to ₹279.54 in FY 2023-24.
Also read: Belgium first in EU to outlaw single-use vapes in anti-tobacco drive
With no new cultivation licences issued in the past 10 years, the number of registered FCV tobacco growers remains between 80,000 and 85,000. However, the commodity has witnessed an 87% export growth in the past five years, rising from ₹6,408 crore in FY 2019-20 to ₹12,006 crore in FY 2023-24. Exports of FCV tobacco are expected to grow by 8% and exceed ₹13,000 crore in the current financial year.
Export volumes have increased from 218.84 million kg to 315.51 million kg over the past five years, although the government aims to maintain production at around 270 million kg.
India is the second-largest producer of tobacco after China, the second-largest exporter of unmanufactured tobacco in quantity after Brazil, and the fourth-largest producer of FCV tobacco worldwide, after China, Brazil, and Zimbabwe.
