Archive · 26 Jul 2025
India's Tobacco Industry Requires Urgent Modernization
India's tobacco industry, which supports many people, needs an upgrade.
Currently, India exports cheap tobacco, but other countries turn it into more valuable products.
To compete and improve health, India needs to create a modern, traceable system.
This would ensure fair prices for farmers, better health regulations, and align with global trends in non-combustible tobacco products.
Other countries show that by governing the industry better, India could increase its revenue and improve public health.
India, the world's second-largest tobacco producer, needs to modernize its tobacco sector.
Modernization would support rural livelihoods and uphold public health commitments.
Indian tobacco exports, mainly raw leaf, earn significantly less compared to value-added products.
India's policy support for tobacco lags behind global trends in non-combustion products.
Structured systems offer benefits like stable prices and alignment with public health goals.
- Who
- The Indian tobacco industry and its stakeholders, including farmers, processors, and policymakers.
- What
- The need for modernization in India's tobacco industry.
- When
- The modernization is needed now due to global market shifts.
- Where
- India, specifically focusing on tobacco-producing regions like Andhra Pradesh and Gujarat.
- Why
- To remain competitive, support rural livelihoods, and meet global standards and health obligations.
Challenges with Current Policies
Proposed Modernization Strategies
Economic Concerns
Challenges with Current Policies
India's tobacco exports are primarily raw leaf, fetching low prices.
Proposed Modernization Strategies
India can boost export earnings through value-added products.
Policy Priorities
Challenges with Current Policies
Current policies neglect the tobacco sector and its potential for innovation.
Proposed Modernization Strategies
Policy support is needed to align with public health objectives and global trends.
- India's Tobacco Export Value (2023-24)
- ₹12,000 crore
- Percentage of Raw/Semi-processed Leaf Export
- Over 70%
- Raw Leaf Price per kg
- ₹256–342
- Countries Importing and Re-exporting
- Switzerland and Italy
- Calcutta High Court Ruling
- Cleared ITC's nicotine aerosol device patent
- Countries with Legal Heated Tobacco Products
- Over 80, including Japan, Italy, UK