Parliament Parliament Q&A
India second largest tobacco producer, exports up 53.10% in ten years
The question asked whether India is the second largest tobacco producer, if high taxation affects farmers' income and causes illicit trade, and if the government has assessed this or plans to protect farmers and curb illicit trade.
The Ministry of Commerce and Industry answered.
Asked and answered by: Shri Giridhari Yadav, Shri Dinesh Chandra Yadav (asked); Ministry of Commerce and Industry (answered)
What the government said
- India is the second largest tobacco producer after China
- Tobacco exports increased by 53.10% in quantity and 166.51% in value over ten years
- FCV tobacco farmers' average price increased by 86.82% from Rs. 134.43/kg to Rs. 251.14/kg
- Tobacco Board Growers' Welfare Scheme benefited over 1,300 growers in 2025-26
- Capacity-based levy under Central Excise for tobacco products from 01.02.2026
- Rule 31D inserted in CGST Rules for valuation based on Retail Sale Price from 01.02.2026
- Track and Trace Mechanism under Section 148A of CGST Act, 2017
Also in the document
- No assessment available on direct correlation between higher taxation and adverse impact on farmers' income
- Zero-rated supply of tobacco products on payment of IGST withdrawn for better monitoring
How this was written
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The original document
Parliament of India — Questions & Answers (Lok Sabha, starred)
Question to govt · Ref. LS Q134 (Session 8) · 28 Jul 2026
Read it here
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