Archive · 26 Jul 2025
India's Tobacco Sector Urged to Modernize for Growth
Imagine India's tobacco industry like a big farm.
Right now, it's selling its crops at low prices.
The article suggests that if India modernizes its tobacco business, it can make more money and better follow health rules.
This involves making sure the tobacco is tracked properly, supporting farmers, and selling new types of tobacco products.
Other countries are doing this successfully, and India could too, by improving its policies.
India's tobacco sector faces a critical juncture, requiring modernization and policy adjustments.
India is the second-largest tobacco producer, with millions dependent on the sector across various states.
The article discusses the need for better policy support, particularly in light of global market shifts towards traceable tobacco products.
India's exports are primarily raw or semi-processed tobacco leaf, fetching low prices compared to value-added products.
The article calls for a coordinated national effort, including a traceability platform and recognition of value-added non-combustion products.
- Who
- The author, and various stakeholders in the Indian tobacco industry, including farmers and processors.
- What
- India's tobacco sector needs modernization to improve trade and public health.
- When
- Published on July 26, 2025.
- Where
- India, specifically Andhra Pradesh, Gujarat, Uttar Pradesh, and other states.
- Why
- To align with global market trends, boost exports, support livelihoods, and reinforce public health commitments.
Advocates for Modernization
Those who may not prioritize farmer welfare or prefer other economic models
Economic Competitiveness
Advocates for Modernization
Modernizing tobacco is crucial for India to compete in the global market.
Those who may not prioritize farmer welfare or prefer other economic models
Those who oppose modernization or advocate for maintaining the status quo
Rural Livelihoods
Advocates for Modernization
Modernization helps support rural livelihoods.
Those who may not prioritize farmer welfare or prefer other economic models
Those who may not prioritize farmer welfare or prefer other economic models
- India's Rank in Tobacco Production
- Second largest
- Main Tobacco Export Type
- Raw or semi-processed leaf
- Tobacco Export Value (2023-24)
- ₹12,000 crore
- Price per kg of exported raw tobacco leaf
- ₹256–342
- Countries mentioned for value-added products
- Switzerland and Italy