India Leaf Exports Expected to Dip by One-Fifth

The current social and economic lockdown due to the Covid-19 crisis in India will cause tobacco product consumption and exports to decline by 20 percent this year, according to the Tobacco Board. The board added that it may ask tobacco growers to reduce its production due to the drop in demand.

A member of India Tobacco Association (ITA) said, “Like any other industry, the tobacco industry also came to standstill due to lockdown. Tobacco auction in AP, which began earlier, was also suspended. It is expected to begin after April 20. Due to delay in supplies and also health advisories on Covid-19, there may be muted demand this year. Tobacco Board expects about 20 percent dip in demand this year.”

Last year, leaf production in Andhra Pradesh and Karnataka totaled 124 million kilograms and 103 million kilograms, respectively. About 65 percent of the total amount of tobacco leaf grown in India is exported.

The ITA spokesperson added, “The foreign buyers are yet to come to India and physically inspect the product and place orders, though initial discussions on requirement and quality parameters are over. They changed their travel plans as there is complete lockdown in most of the countries.”