An analysis of trend and export competitiveness of tobacco in India

Abstract

India is the world’s second largest producer and exporter of tobacco after china in the global market. India is a leading tobacco exporter with exports of leaf tobacco and tobacco products generating foreign exchange earnings of around Rs. 6,000 crores annually. In total agricultural exports tobacco share is around 2.69 per cent in 2016-17. This paper studied the trend of tobacco export in domestic and international prices and export competitiveness during the period 1987-88 to 2016-17. The domestic price and international price of tobacco were showing exponential trend of growth with increasing at increasing rate. The NPC value of tobacco showed the average value as 0.40 per cent and 0.46 per cent in period I and period II, respectively and the NPC value for overall period was 0.43 per cent. It indicates highly competitiveness in international market. Result shows that the export of tobacco from India is highly competitive.