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MUMBAI, - India is likely to export a record $600 million of
tobacco in 2008/09, as a shortfall in global output boosted demand and pushed
up prices to new highs, a senior official said.
"Prices have risen about 70 percent from last year and
importers are buying at these levels also. At this price, exports will touch $
600 million (in 2008/09)," J Suresh Babu, chairman of the Tobacco Board,
told Reuters on Thursday.
In the year ending March 2008, tobacco exports rose 32 percent
to $503 million, he said.
The average price of Flue Cured Virginia (FCV), a premier
grade used for cigarette-making, has risen more than 78 percent to 84.67 rupees
per kg, from 47.47 rupees a year ago.
A shortfall in other main producing countries like Brazil has
pushed up prices, which will sustain at these levels until global production
rises, Babu said.
India is the second biggest producer of tobacco after China
and the fourth-biggest exporter of unmanufactured tobacco.
However, rising exports and higher prices are hurting Indian
cigarette makers like Kolkata based ITC Ltd, the biggest cigarette maker in the country, and
Godfrey Phillips India Ltd.
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