India’s Major Crops: Tobacco

Tobacco was introduced in India by Portuguese in 16^th or 17^th century. At present, India is third largest tobacco producer in the world after China and Brazil. Here is a cheat sheet of Tobacco Cultivation and Industry in India.

Major verities of Tobacco

Four major varieties of tobacco cultivated and produced in India are:

1. Flue-cured Virginia (FCV) Tobacco
2. Bidi Tobacco
3. Cigar Filler Tobacco
4. Hookah and chewing Type of Tobacco

Location of Tobacco Industry

• Cultivation of tobacco is done all over the country, although the commercial cultivation of tobacco is concentrated in the States of Andhra Pradesh, Telangana, Karnataka, Gujarat, Maharashtra, Bihar, Tamil Nadu and West Bengal.
• Andhra Pradesh ranks first in terms of Tobacco Production.

Factors Responsible for Location of Industry

Climatic Factors

• 50-100cm annual rainfall and 15-20^oC temperature during growth period is ideal.
• Tobacco cannot sustain in rainfall more than 100cm.
• It is grown in warm climates with rich, well-drained soil.
• Too dry weather is not suitable as leaves break into small pieces.

Edaphic (Soil Related) Factors

• The type, grade and quality of tobacco produced are considerably influenced by the soil characteristics, specially the texture of the surface and sub-soils.
• Light soils produce a large and thin leaf Tobacco.
• FCV Tobacco grows on different type of soils.
• Bidi tobacco is grown mostly in alluvial soils, black clayey or loamy soils

Other Factors

These include Labour Availability; Export Based Location and Government Policies.

Exports and Key Markets

• Indian tobacco is exported to about 100 countries.
• Flue-cured Virginia (FCV) is the main exportable tobacco produced in India and around 60 % of it is exported, while the rest used in domestic cigarette manufacturing.
• Tobacco Board strives to improve the existing markets and develop new markets for Indian tobacco and tobacco products by undertaking brand building exercises and participation in international tobacco exhibitions.

Opportunities with Tobacco Farming

• Tobacco growing is a labour- intensive activity that requires vast expertise of farming techniques.
• Being less perishable than most other potential alternative crops, tobacco can easily be stored.
• There is no better cash crop than Tobacco which is suited to most environments.
• Tobacco enjoys very high price stability.
• Tobacco yields high returns per acre.
• Production and processing costs of tobacco are also quite low in India, thus making the Indian tobacco price-competitive and value for money.

Govt Efforts to support the Industry

Though tobacco is a demerit good, the government makes some efforts to support the farmers that grow this crop. These include Institutional and regulatory support; Price and market support; Export promotion; Research and development (R&D); and Direct fertilizer and credit subsidies.

Revenue Insurance Scheme For Plantation Crops (RISPC)

• Aim of the scheme is to protect farmers against risks like yield loss, pests attacks and income loss caused by fall in international/domestic prices.
• It will be implemented on pilot basis for 2 years in West Bengal, Kerala, Karnataka, Andhra Pradesh, Assam, Tamil Nadu and Sikkim covering various plantation crops including Tobacco.

Issues in Tobacco Farming

Some of the major issues in tobacco farming are as follows:

• Marketing: The tobacco cultivation lacks efficient marketing System.
• Child Labour: This industry is notorious for use of child labour, both in cultivation and processing of tobacco. The situation is much grave for India. Many children working in the tobacco industry suffer from the Green Tobacco Sickness (Nicotine induced Poisoning).
• Negative Impact on Agriculture Economy: Tobacco cultivation shifts resources from Food Production to Tobacco Production; thus gives negative impact to agricultural economy.
• Negative Impact on the Environment: Require heavy use of Pesticides which lead to negative health impacts.
• Marketing Channels and price determination of Cigarettes: Advertisement of Cigarette Product is banned.
• Initiatives like World No Tobacco Day (WNTD are a setback to Tobacco Farming.

Rules and Polices related to Tobacco

Provisions under Tobacco Board Act of 1975

• Establishment and constitution of the Tobacco Board
• No person shall grow Virginia tobacco except under, and in accordance with the conditions of a certificate of registration obtained from the Board in accordance with the rules made under this Act.
• No person shall export tobacco or any tobacco products or function as a packer, auctioneer of, or dealer in, tobacco unless he registers himself with the Board in accordance with the rules made under this act.
• No court inferior to that of a Metropolitan Magistrate or a Magistrate of the first class shall try any offence punishable under this Act.

Tobacco Board Of india

• The Tobacco Board of India creates synergies between tobacco growers, traders and exporters.
• It also assists tobacco farmers in securing crop loans, quality seeds, fertilisers and other critical inputs; it also counsels farmers to produce quality tobaccos to meet the evolving international demand.
• In addition, the Board conducts auctions for the sale of tobacco in a competitive and transparent environment.
• The Board sponsors trade delegations to potential importing countries and also invites delegations from other countries.

Who Framework Convention on Tobacco Control (FCTC) 2003

• WHO FCTC is the first global public health treaty in response to the globalization of the tobacco epidemic.
• It is legally binding to its members. India has also ratified it.
• Its recommends demand side measures of tobacco control like
  1. Price and tax measures to reduce the demand for tobacco.
  2. Non-price measures like Packaging and labelling of tobacco products; public awareness and Tobacco advertising etc.
  3. It also gives some supply measures of tobacco control like preventing illicit tobacco trade; control sales to minors etc.

Framework Convention on Tobacco Control (FCTC) , COP7

• COP7 meet for WHO’s Framework Convention on Tobacco Control (FCTC) was held in New Delhi in December, 2016.
• Governments across the Southeast Asia region — and the world — explored how they can support tobacco farmers .

Major issues with Tobacco Farming, Government role to help Tobacco Farmers?

• The key issue with the tobacco cultivation is that, in recent times, the demand for tobacco products has declined in developed as well as developing countries and there is a need to support the farmers to find an alternative livelihood. For the government, the challenge is to provide them adequate training to diversify their crops and income and also emphasize on environmental and health outcomes for consumers.

The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 or COTPA, 2003

Key Provisions

• Advertisement of tobacco products including cigarettes is prohibited. No person shall participate in advertisement of tobacco product, or allow a medium of publication to be used for advertisement of tobacco products.
• Tobacco products cannot be sold to person below the age of 18 years, and in places within 100 metres radiusfrom the outer boundary of an institution of education, which includes school colleges and institutions of higher learning established or recognized by an appropriate authority.
• Cigarette packets are required to carry pictorial warnings of a skull or scorpion or certain prescribed pictorial warnings along with the text SMOKING KILLSand TOBACCO CAUSES MOUTH CANCER in both Hindi and English.
• In place where tobacco products are sold must display appropriate messages like “Tobacco Causes Cancer” and “Sales of tobacco products to a person under the age of eighteen years is a punishable offence”.

Cigarettes and Other Tobacco Products (Packaging and Labelling) Amendment Rules, 2014 (COTPA)

• Rule 3 (1) (b) to increase the size of the specified health warning from the c 40% to 85% of the principal display area of the package of the tobacco product.

Present Issue

Tobacco Institute of India and others had challenged enforcement of the COTPA which required printing of pictorial health warnings covering 85 per cent of tobacco product packages. In May last year, the Supreme Court had transferred all petitions against the 85 per cent rule filed in various high courts to the Karnataka High Court and asked it to hear. The court said even if the health ministry enjoyed power to make such rules, they violated constitutional norms as it was an “unreasonable restriction” on the right to do business.