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Tobacco prices surge in India

Posted 02 May 2024

2 min read

  • Reasons for the Rise in Price
    • Decrease in crop production in major tobacco-producing countries like Brazil, Zimbabwe and Indonesia due to extreme weather conditions.
    • China imposed restrictions on tobacco exports to safeguard its local cigarette industry.

 

  • Tobacco In India
    • India is 2nd largest producer and exporter.
    • Temperature: Between 20° to 27°C is required.
    • Rainfall: When grown as a rainfed crop then requires at least about 500 mm of well-distributed rainfall during the crop growing season. (Usually not grown in the area if rainfall exceeds 1200 mm).
    • Soil: sandy or sandy loam soil. Cigarette-tobacco growing areas of Andhra Pradesh are an exception in that the crop is grown on heavy black soil.
    • Some of the varieties cultivated in India are 
      • flue-cured Virginia (FCV) tobacco in Andhra Pradesh & Karnataka;
      • Bidi Tobacco in Gujarat & Karnataka & Andhra Pradesh.
      • Cigar & Cheroot in Tamil Nadu & West Bengal
      • Pikka Tobacco in Orissa

 

  • Significance: Livelihood security to 36 million people, earn foreign exchange(4% of the country’s total agri-exports), Government revenue (10% of the total excise revenue collection from all sources.)etc.

 

Tobacco Control in India

  • Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 : Prohibits smoking in public places; ban on sale of tobacco products to minors, etc.
    • Cigarettes and other Tobacco Products (Packaging and Labelling) Amendment Rules, 2022-Provided images for display on package with health warnings.
  • Other steps: India became a Party to the WHO Framework Convention on Tobacco Control(2005), National Tobacco Control Programme (NTCP), etc.
  • Tags :
  • WHO
  • Tobacco
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