Tobacco Board Focuses On Sustainability & Growth from Vajirao & Reddy Institute

TOBACCO BOARD FOCUSES ON SUSTAINABILITY & GROWTH

• The Tobacco Board has been at the forefront of strategic initiatives aimed at promoting the sustainability and growth of India’s tobacco industry.
• These measures include crop planning, production regulation, and export promotion to ensure the industry's long-term viability.

• Strategic Initiatives for Sustainability and Growth:
  • The Tobacco Board, established in 1976 under the Tobacco Board Act, plays a key role in regulating tobacco farming and ensuring fair and remunerative prices for tobacco farmers.
  • The Board works closely with farmers, providing assistance and financial support through banks to ensure high-quality tobacco production that meets the standards of both domestic and international markets.
  • The Board’s extension and developmental activities promote sustainable cultivation practices, ensuring the tobacco industry’s future growth.
• Tobacco Exports Achieve Record Highs:
  • India is the 2nd-largest producer of tobacco in the world, following China, and the 4th-largest producer of Flue-Cured Virginia (FCV) tobacco globally.
  • The tobacco sector continues to be a significant contributor to India’s foreign exchange.
  • In 2023-24, tobacco exports reached a record ?12,005.89 crore (approximately $1.45 billion), marking an impressive growth of 87% compared to ?6,408.15 crore in 2019-20.
  • The export volume has also surged from 218.84 million kg in 2019-20 to 315.51 million kg in 2023-24.
• Doubling of Tobacco Farmers' Income:
  • The income of Flue Cured Virginia (FCV) tobacco farmers has more than doubled in the past five years.
  • From ?124 per kg in 2019-20, the price paid to FCV tobacco farmers has increased to ?279.54 per kg in 2023-24.
  • This achievement is a direct result of effective government policies and efficient market mechanisms that have significantly improved the livelihoods of approximately 83,000 farmers.
  • The introduction of an IT-enabled electronic auctioning system by the Tobacco Board has played a crucial role in ensuring better price discovery and securing fair remuneration for farmers.
• Record-Breaking 2023-24 FCV Tobacco Season:
  • Despite facing challenges such as natural calamities, FCV tobacco farmers in Andhra Pradesh recorded a historic production of 215.35 million kg of tobacco in the 2023-24 season.
  • Farmers realized an average price of ?288.65 per kg, the highest-ever recorded price for FCV tobacco, generating ?6,313.58 crore in earnings.
  • This represents an increase of ?62.92 per kg compared to the previous season's average.
  • The auctions for the 2023-24 crop ran for 178 days, from 29th February to 14th October 2024, with 43,021 farmers participating across 16 auction platforms.
• Supportive Welfare Measures for Farmers:
  • The Tobacco Board has extended various welfare measures to tobacco farmers, including financial assistance in the form of grants and loans during difficult times.
  • In the 2023-24 season, 38,751 registered growers benefitted from a penalty waiver for the sale of 76.84 million kg of excess tobacco, resulting in savings of ?184 crore for the farmers.
  • The Tobacco Board also contributed ?92.70 lakh to the Chief Minister’s Relief Fund in Andhra Pradesh to assist victims of recent cyclones, demonstrating its commitment to the welfare of the farmers and communities.
• Focus on Sustainable Practices:
  • The Tobacco Board continues to emphasize sustainable tobacco farming by encouraging the adoption of eco-friendly cultivation practices.
  • This not only enhances the quality of tobacco but also ensures the long-term viability of the industry in a changing environmental landscape.
  • The Board’s efforts also include promoting organic tobacco cultivation and reducing the environmental impact of tobacco farming through better crop management practices.

• Economic Contributions:
  • The tobacco industry significantly contributes to India's economy:
    • Provides income to hundreds of thousands of farmers.
    • Contributes to foreign exchange earnings through exports.
  • Growth in production and exports reflects effective strategies by the Tobacco Board and supportive government policies.
• Farmer Welfare and Income Growth:
  • The income of FCV (Flue-Cured Virginia) tobacco farmers has doubled due to:
    • Targeted support and efficient market systems.
    • Rising prices, leading to better livelihoods for farmers.
  • The sector shows potential for continued income growth for farmers.
• Sustainability in Tobacco Cultivation:
  • The Tobacco Board focuses on sustainable practices:
    • Promotes eco-friendly farming methods.
    • Ensures long-term sustainability amidst growing global environmental concerns.
    • Responds to increasing demand for responsibly produced goods.
• Challenges and Resilience:
  • Natural calamities pose challenges, yet tobacco farmers in Andhra Pradesh have shown:
    • Resilience and adaptability.
    • Record-high production and prices in the 2023-24 season demonstrate the strength of the industry and its support systems.