Tobacco Business in India
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Tobacco Business in India is important for the economic development of the country. The tobacco contributes to the major portion of gross domestic product of India. It also helps in the rural economic development. Tobacco and tobacco products are exported to different countries and helps in earning stronger foreign currencies.
Tobacco Business in India-Major points
India ranks third in the production of tobacco in the world
India is even one of the largest consumers of tobacco and tobacco based products
Last Updated on 19 May 2011
- The yearly production of tobacco in India is 5,80,000 metric tonnes
- Nearly 12 lakh people are involved in the cultivation of tobacco in India
- Tobacco and tobacco products consists of cigarettes, bidis, zarda, cigars, etc
- Bidi manufacturing is the largest cottage industry in India
- Nearly 5 million people are involved in the commercial operation pertaining to tobacco
- Tobacco is consumed by smoking of cigars, hukka, bidis, cigarettes, by chewing of zarda, pan masala, tobacco leaves, etc
- Northern Black Soils (NBS)
Tobacco is grown on the black soils in the districts of Karimnagar, Khammam, East and West Godavari, and Warangal. - Central Black Soils (CBS)
Tobacco is grown on the black soils in Guntur and Krishna districts of Andhra Pradesh and Maharashtra's Gadchiroli district, by the means of rain water. The average produce is nearly 1100 Kgs per hectares. - Southern Black Soils (SBS)
Tobacco is grown on the black soils in Prakasam and Nellore districts near the Coromondal coast Southern India. The area cultivated is nearly 30,000 hectares. - Southern Light Soils (SLS)
Tobacco is grown on the light soils in Nellore and Prakasam districts. The area cultivated is nearly 58,000 hectares. - Northern Light Soils (NLS)
Tobacco is grown on the light soils in East and West Godavari and in the parts of Khammam districts. The area cultivated is nearly 18,000 hectares. - Eastern Light Soils (ELS)
Tobacco is grown on the light soils in Vijayanagaram of Andhra Pradesh and the Rayagada sector of Orissa.The area cultivated is nearly 700-800 hectares the average production is 1 M.Kgs. - Karnataka Light Soils (KLS)
Tobacco is grown on the light soils in Mysore, Shimoga, Chikkamagalore, Davangere, Hassan, Coorg, and Chitradurga districts of Karnataka. It is a monsoon crop.
- The contribution of the excise duty on cigarettes to the total revenue is 8.8 %
- The excise duty on cigarettes was levied at a rate 10%, which was later reduced to 8.8 %
- The contribution of the excise duty on other tobacco products such as bidis, cigars, etc, to the total revenue is 3.3%
- The domestic consumption of tobacco is very high
- The export of tobacco depends on the demand for the same in the country
- The highest export earnings pertaining to tobacco comes from tobacco leaves
- The earnings from the export of cigarettes has declined by 76%
- The earnings from the export of tobacco leaves has increased by 99%
Last Updated on 19 May 2011
