In volume terms, tobacco exports, comprising raw tobacco and its products, rose 13% to 173,484 tonne between April and December 2008 from 153,991 tonnes in the year-ago period, a senior Tobacco Board official said. ?India exported tobacco worth Rs 2,428.65 crore between April and December against Rs 1,508.51 crore in the same period last year,? he said.
Raw tobacco exports soared to Rs 1,978.93 crore in April-December from Rs 1,121.07 crore in the same period of the previous year. In volume, the shipments rose to 153,064 tonnes during the period from 133,941 tonnes a year ago, he said.
?High prices in global markets have boosted prospects of shipments. That apart, the depreciation of the rupee against the dollar also benefited the exporters,? he said. Indian tobacco prices hit records due to a shortfall in output in some of the major producing countries, including China, last year.
Prices of tobacco skyrocketed to a record average of Rs 84.85 per kg during auctions in Andhra Pradesh in 2008 against Rs 47.47 the previous year. Similarly, prices of the highest quality tobacco in Andhra Pradesh spiralled to a record Rs 141 a kg, as against Rs 65 in 2007.
The depreciation of the rupee boosted the profitability of the exporters, the official said. The Indian currency depreciated by over 21% to Rs 48.58 against the dollar between April 1 and December 31, 2008. Tobacco Board Chairman J Suresh Babu had said that India's tobacco exports may increase to $700 million (close to Rs 3,500 crore) in this financial year, though shipments in volume terms may not rise significantly.
India exported around 2.1 lakh tonnes of tobacco worth $503 million in 2007-08. Belgium and Russia accounted for bulk of India's tobacco exports in 2007-08 and the Philippines, Germany and South Korea were other major markets.
