India second largest tobacco producer, exports up 53.10% in ten years
The question asked whether India is the second largest tobacco producer and if high taxation affects farmers' income and illicit trade, addressed by the Ministry of Commerce and Industry.
Shri Giridhari Yadav, Shri Dinesh Chandra Yadav (asked); Ministry of Commerce and Industry (answered)
- 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 over ten years.
- Tobacco Board Growers' Welfare Scheme assisted over 1,300 growers in 2025-26.
- No assessment available on direct correlation between higher taxation and farmers' income impact.
- Capacity-based levy under Central Excise for tobacco products from 01.02.2026.
- Rule 31D introduced in GST rules for valuation based on Retail Sale Price from 01.02.2026.
- Track and Trace Mechanism introduced via Section 148A in GST Act from 01.02.2026.
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Parliamentary Q&A
28.07.2026
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Document details
| Official title | High Taxation on Tobacco Products |
| Source body | Parliament of India — Questions & Answers (Lok Sabha, starred) |
| Reference number | LS Q134 (Session 8) |
| Status | closed (question) |
| Year | 28.0 |
| Closing date | — |
| Documents | 1 |