Production and Marketing of Tobacco In India (A Case Study of AP)

India is an important tobacco producer and exporter. Besides contributing to export earnings, tobacco provides a large fund of resources to the national exchequer in terms of excise and custom duties. It is providing employment millions of people every year in the both manufacturing sector and agricultural sector. Though tobacco constitutes less than 0.3 per cent of the total cropped area in the country, it is of considerable economic significance. In India, tobacco area and production are concentrated in Andhra Pradesh, Gujarat, Karnataka and Tamil Nadu. The State of Andhra Pradesh accounts for about 50 per cent of total production, 85 per cent of cigarette tobacco production and 80 per cent of total tobacco exports of the country. In Andhra Pradesh tobacco growing area is concentrated in Prakasam, Nellore, Guntur, Krishna, East Godavari, West Godavari, and Kurnool Districts. Prakasam District alone accounted for 48 per cent and 44 per cent of Virginia tobacco area of the State and country respectively. In the total tobacco production, the district accounted for 16 per cent and 35 per cent of the country and the state respectively.