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What are The World's Top Tobacco Exporters?
Despite being a global commodity exporter, there is still a lot of work to be done for tobacco companies to become more sustainable. That means ensuring the quality of their products and keeping the price high so that consumers can continue to buy it. However, it's a hard task and it's one that requires time and effort. This is why it's important for tobacco companies to stay up to date on what's happening in the industry.
Known as one of the top exporters of tobacco in the world, India has been a major producer of different types of tobacco. Currently, India produces flue-cured Virginia (FCV) tobacco and non-FCV tobacco.
Flue-cured Virginia tobacco is used in the production of cigarettes. India is the only country that produces both types of FCV tobacco. India also produces non-FCV tobacco and Oriental tobacco.
The export of tobacco in India is regulated by the Tobacco Board of India. The board ensures that the farmers get a fair price for their produce. It also helps exporters develop new markets. The board issues Registration-cum-Membership Certificates (RCMCs) to tobacco exporters. It takes about five working days for the board to issue RCMCs.
The Tobacco Board of India also works to promote tobacco marketing and technological research. The board has been involved in the development of tobacco varieties and production processes that comply with global standards.
Despite the decline of tobacco sales, Brazil remains one of the world's top tobacco exporters. Its harvest is concentrated in the south of the country, where prices have risen in recent years. In 2021/22, Brazil produced 560.2 thousand tons.
The Brazilian export industry saw record levels of productivity, due to a combination of technologies adopted by the country's tobacco growers and processors. This was accompanied by an increase in average prices, which drove up revenue.
In 2013, Brazilian tobacco exports topped US$3.240 billion. This figures included exports to MERCOSUR countries, which accounted for almost one-eighth of Brazilian tobacco companies' total export revenues. The United States was the top buyer of Brazilian cigarettes. Other buyers included China, Belgium, and Indonesia.
Several countries have started to import tobacco from Indonesia. Indonesia is a large and emerging market for the tobacco industry. This is a good thing for Indonesia. But Indonesia must implement stricter tobacco control policies if it is going to reduce its tobacco consumption.
Indonesia's cigarette industry has grown dramatically. By 2020, Indonesia's cigarette manufacturers will produce 524 billion cigarettes. This is a good thing for the tobacco industry. But Indonesia must reduce the costs of tobacco processing.
Indonesia's tobacco imports are increasing rapidly. This is due to the inability of local producers to meet the demand. These imports are cheaper than local produced tobacco. This creates an economic burden and a public health problem.
Indonesia's tobacco exports were US$1.15 billion in 2021. The largest market for tobacco exports from Indonesia was Papua New Guinea. Other markets included Australia, South Korea, and China. The average price of tobacco exports was $9,266 per ton.
Despite its economic difficulties, tobacco remains one of the largest earners of foreign currency in Zimbabwe. The country exports almost 700 million dollars in tobacco annually, generating about 30 percent of its foreign exchange.
The Tobacco Industry and Marketing Board (TIMB) regulates the industry. The organization caters for different types of tobacco buyers. It tracks sales, and is looking at alternative financing models for farmers.
The Tobacco Marketing and Levy Act of 2004 established tobacco sales through contract floors. This allows for tobacco farmers to be paid in foreign currency. However, many tobacco growers are stranded in debt due to a system that pays only a fraction of the value of the tobacco they produce.
The bulk of the flue-cured tobacco crop in Zimbabwe comes from small-scale Black farmers. They produce about 63% of the crop. However, they are usually trapped in a vicious debt cycle. They have to pay their loan back before they make any money.
Historically, Turkey was one of the largest tobacco producers in the world. But the country's tobacco industry is now controlled by multinational companies. A 2002 law allowed the government to sell the state-run tobacco company TEKEL, resulting in a loss of production. The government also agreed to phase out TEKEL's monopoly status.
The Turkish government now allows foreign companies to produce cigarettes in Turkey. British American Tobacco (BAT) has a tobacco plant in Turkey. But it does not purchase tobacco from local growers. Instead, it uses Virginia tobacco.
The tobacco industry in Turkey has become a significant source of tax revenue for the government. In 2016, 61 billion Turkish liras in special consumption taxes were collected, up from 48 billion liras in 2006. These taxes are intended to deter young people from smoking and encourage existing smokers to quit.