Tobacco exports are likely to dip to Rs. 6,500 crore as against the target of Rs. 7,000 crore during 2015 fiscal in view of decline in demand in the USA and countries in the European Union on the one hand and excess production in African countries.
The export during the last fiscal was to the tune of Rs. 6,000 crore. Giving an indication to this effect, Tobacco Board Chairman K. Gopal told reporters here, “We may not be able to meet the target.” Though the growers in Karnataka, where e-auctions were on, got a maximum of Rs. 176 per kg for bright grade from international buyers, the average price fell to Rs. 112.14 per kg for the 72.91 million kg marketed till last week, according to Tobacco Board sources. Growers in Karnataka produced 99 million kg as against the crop size of 101.65 kg. Ahead of the auctions beginning next month in A.P., he estimated production at about 180 million kg as against the crop size of 172 million kg.
