Tobacco prices expected to remain firm despite chewing tobacco bans

Tobacco merchants in Gujarat, India, are expecting tobacco prices to rise further when the new crop is delivered in March-April, according to a story in the latest issue of the BBM Bommidala Group newsletter.

Gujarat mainly grows tobacco used in chewing tobacco and snuff.

Prices in 2012 were increased by 15 per cent on those of 2011 and, even though chewing tobacco bans have been imposed in a number of states, negligible carry-over stocks of leaf tobacco and a drop in acreage are likely to ensure that prices remain firm.