Now Reading: India’s tobacco exports jump 166% in value over decade to Rs 17,192 crore
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India’s tobacco exports jump 166% in value over decade to Rs 17,192 crore
India’s tobacco exports jump 166% in value over decade to Rs 17,192 crore
India's tobacco and tobacco product exports surged 53 per cent in volume and 166.5 per cent in value over the past decade, the government told Parliament on July 28. Shipments rose from…
The Story in Brief
India's tobacco and tobacco product exports surged 53 per cent in volume and 166.5 per cent in value over the past decade, the government told Parliament on July 28. Shipments rose from 240.93 million kg valued at Rs 6,450.66 crore in 2016-17 to 368.85 million kg worth Rs 17,192.04 crore in 2025-26. The figures, provided by Union Minister Piyush Goyal in a written Lok Sabha reply, place India as the world's second largest tobacco producer after China.
To support FCV tobacco growers, the government promoted Good Agricultural Practices, fixed annual crop sizes with stakeholders, and strengthened the e-auction platform for transparent pricing. Average prices fetched by FCV farmers rose 86.82 per cent, from Rs 134.43 per kg to Rs 251.14 per kg. Separately, welfare schemes benefited over 1,300 growers in 2025-26. The government also introduced a capacity-based excise levy and a track-and-trace mechanism from February 1, 2026, to counter tax evasion.
The Indian Opinion
The government has banked on rising exports and farmer welfare to paint a rosy picture. Yet the 86 per cent jump in average price for FCV tobacco farmers, while welcome, masks the health costs India bears. The real test is not export earnings but whether the new Track and Trace mechanism and capacity-based levy, effective from February 2026, can curb the illicit trade that feeds tax evasion and undercuts legitimate growers. Will enforcement match intent?
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
