India Tobacco Exports Rise 166 Percent Over Last Decade

The Government of India reported that tobacco and tobacco product exports grew by 166.51% in value over the last decade, reaching Rs 17,192.04 crore (USD 1,948.98 million). According to a written reply from Union Minister Piyush Goyal to the Lok Sabha, export volumes increased by 53.10%, rising from 240.93 million kg to 368.85 million kg. This growth positions India as the world's second-largest tobacco producer after China.

To support Flue-Cured Virginia tobacco growers, the government implemented Good Agricultural Practices and adjusted annual crop sizes. These interventions, alongside improvements to electronic auction platforms, contributed to an 86.82% increase in average farmer prices. Financial assistance was also distributed to over 1,300 farmers during 2025-26 through the Growers' Welfare Scheme administered by the Indian Tobacco Board.

To combat illicit trade and tax evasion, the government introduced a capacity-based levy and new GST rules effective February 1, 2026. These measures include the implementation of a Track and Trace Mechanism to ensure regulatory compliance.