Tobacco in India - Highlights

  • India is the 2nd largest tobacco producer with an annual production of around 800 million kgs
  • India is also among the top tobacco exporters with an annual foreign exchange earnings of around Rs.6,000 crores per annum
  • With just 4.64 Lakh hectares of arable land under tobacco cultivation, farmers are earning 3 to 4 times the net returns than any other crop
  • Tobacco crop is grown on marginal soils, where no other crop can be grown by farmers
  • Tobacco crop can withstand dry climatic conditions
  • Tobacco by-products are used for improving the soil fertility when added back to soil
  • Nearly 26 million farmers and farm workers earn their livelihood from tobacco in India
  • In all 45.7 million people are dependent on tobacco for their livelihood
  • Tobacco products contribute Rs.30,000 crores in Government’s Tax revenues
  • Tobacco exports provide a huge opportunity to the Government to increase its foreign exchange earnings

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