Tobacco Asia

58 tobaccoasia LEAF NEWS 烟叶新闻 India's Tobacco Exports Soar to All-Time High India's exports of tobacco and tobacco products reached an all-time high of over INR160 billion (US$1.92 billion) during the 2024–25 financial year, according to Sharad Tandan, director of the Tobacco Institute of India (TII). He shared this milestone during the Silver Jubilee celebration of the TII Tobacco Farmers' Awards in Mysuru in early June. Tandan highlighted India's strong potential to grow its share in the global tobacco market and urged the government to introduce export incentives similar to those provided by other major tobacco-exporting nations. "This will improve the price competitiveness of Indian tobacco in the global market and help us tap the export potential, benefitting domestic farmers," he said. He also emphasized the vital role the tobacco sector plays in India's economy, providing livelihoods to 46,000,000 people across the country. India ranks as the third-largest producer of flue-cured Virginia (FCV) tobacco globally, after China and Brazil, and currently exports to more than 100 countries. Tandan raised alarm over the impact of India's "extremely high" cigarette taxes, stating that they have significantly fueled the illegal cigarette trade. "Illegal cigarettes account for a third of the cigarette volumes in the country, which means every fourth cigarette sold in the country is not legal," he said. He noted that this makes India the fourth-larg- est market for illegal cigarettes in the world, resulting in a revenue loss of INR210 billion (US$2.52 billion) to the government annually. He explained that every tax hike has led to an increase in illicit trade, with smuggled cigarettes bypassing the use of domestic tobacco—directly harming Indian farmers by reducing demand for local leaf. Tandan also expressed concern about the upcoming World Health Organization (WHO) Framework Convention on Tobacco Control (FCTC) Confer- ence of Parties (COP11), scheduled to take place in Geneva in November 2025, warning that it may propose "unreasonable and impractical" policy measures. India Pledges Support for Black Burley Growers Kinjarapu Atchannaidu, India's agriculture, cooperation, and marketing minister pledged full support to black burley tobacco growers, vowing that the government would buy their entire crop, down to the last leaf. Atchannaidu laid out a procurement plan for black burley tobacco where the government will buy the crop in two grades: the common variety at INR12,000 (US$144) per quintal and the low-grade variety at INR6,000 per quintal. Companies must adhere to these fixed prices, regardless of international market volatility. To support this process, the government committed to covering processing costs and announced that MARKFED would step in to purchase the tobacco if necessary. Six sub-committees will supervise the procurement effort to ensure that farmers sell their entire harvest. Atchannaidu stated that the administration stands firmly with the farmers and intends to act decisively to pull them out of this crisis. He also warned companies against making false assurances and demanded concrete commitments to protect farmers' interests. The minister noted that although the cultivation target was 25 m.kg., farmers produced 75 m.kg., leading to a surplus amid declining global demand. Energy minister Gottipati Ravi Kumar explained that companies had motivated farmers to grow black burley tobacco, and now the government would ensure that no leaf goes unsold. He added, "Suicide should not be an option," urging farmers to stay resilient. Special chief secretary of agriculture B Rajasekhar reaffirmed the government's resolve to shield farmers from losses and enforce company compliance in purchasing every kilogram. District collector J Venkata Murali confirmed that authorities have taken decisions in favor of tobacco growers and will monitor both procurement and price enforcement. Parchur MLA Yeluri Sambasiva Rao urged swift government action to support affected farmers and explained the new policies in place. Zimbabwe Tobacco Sales Hit Ahead of New Season As of June 6, Zimbabwe's tobacco sales reached 264 m.kg., falling 36 million short of the national goal of 300 m.kg.,, according to the Tobacco Industry and Marketing Board (TIMB). Nevertheless, as the marketing season progresses, farmers have already begun preparing seedbeds for irrigated crops for the upcoming 2025/26 season. TIMB data shows that by Day 62 of trading, growers had earned US$888 million from 264 m.kg. of tobacco. This marks a 39% jump from the same period last year, when farmers sold 188.6 m.kg. for US$655.8 million. Contract growers remain dominant in the marketplace. By the latest count, contracted tobacco accounted for 250.3 m.kg. valued at US$839.3 million. Auction floors saw 13.6 m.kg. sold, generating US$49.3 million. While some farmers continue harvesting, many others have started grading and baling for delivery. Those with access to irrigation systems have already begun sowing, while others are purchasing seed. Kutsaga Research reported selling over 345,000 grams of tobacco seed, enough to plant more than 70,000 hectares. The official tobacco farming calendar allows seed sowing from June 1 and transplanting from September 1. Farmers must destroy all seedbeds by December 31 each year. As of the first week of June, growers had bought 345,325 grams of seed—sufficient for 70,865 hectares. This figure trails last season's 455,690 grams, which had the potential to cover 91,138 hectares. Late rains have contributed to the slower uptake in seed purchases, though sales have started picking up. "Some farmers are still reaping, while the majority are busy grading and bailing for delivery to auctions. Sales have started to surge this month, as farmers prepare for July 1 dryland tobacco sowing," said Tatenda Mugabe, public relations and communications officer at Kutsaga Research. Zimbabwe has enough seed in reserve to meet national demand for the next five years. Tobacco Farmers Union Trust president Edward Dune confirmed that many farmers have begun establishing seedbeds. "June 1 is the stipulated earliest date for planting. It is already business as usual for farmers with irrigation facilities, as they sow tobacco," said Dune. "The union is also working very closely with the plant quarantine branch within research to ensure sanity in pest and disease control countrywide. Preparations for dryland crop are also advancing well."

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