Date:05/10/2005 URL: http://www.thehindubusinessline.com/2005/10/05/stories/2005100500011200.htm

Back Tobacco industry aims to double exports

Our Bureau

Hyderabad , Oct. 4

THE domestic tobacco industry has targeted to double tobacco exports from 1.63 lakh tonnes to three lakh tonnes by 2009.

The value of these exports would grow to Rs 2,800 crore from the current Rs 1,362 crore.

"Exports are growing at 16 per cent. We are confident of growing at 16-20 per cent," Mr Ch. Narendranath, President of Indian Tobacco Association, said. "Our main focus is on exports," he said.

He told reporters on the sidelines of the four-day national conference here on Tuesday that the message on good manufacturing practices (GMP) was being spread among the farmers.

He urged the Government to increase incentives in order to boost exports. "Currently, we are getting two per cent DEPB (duty entitlement pass book). This should go up," he said, citing subsidies of up to 80 per cent in some countries. The industry also wanted tobacco to be included in agricultural processing zones. "We have appealed to the Government to declare Guntur and Prakasam districts as exclusive zones," he said. In Andhra Pradesh, the association targeted to achieve 130 million kg next year as against the target of 108 mkg last year. The association, however, expected to cross 160 m kg, keeping in mind the bumper crop size of 152 m kg this year.