The Andhra Pradesh Markfed has exported tobacco to the United States, possibly for the first time for a government agency, creating a new opportunity for farmers. Following the State Government's instructions, the agency purchased approximately 1.3 million kg (mkg) of tobacco in 2020.
Andhra Pradesh is a major tobacco-producing state in India. The Tobacco Board, a Central Government agency that regulates tobacco production in the country, set the crop size for Andhra Pradesh at 130 mkg last year.
Though the Markfed frequently steps in to procure a few commodities, it was a first for the agency to procure tobacco. Private traders and tobacco companies buy the produce from the farmers and export it to a few international markets.
The public sector agencies have always tried to avoid exporting their products for fear of incurring losses in the absence of proper export processes and channels.
"From the Chennai port, we exported 120 tonnes of tobacco produced in Andhra Pradesh to the United States." "We processed and packed the produce in accordance with international standards," an AP Markfed official told.
"Three-fourths of it was sold in the domestic market." "We processed the remaining produce and exported it to the United States," he explained.
Following the successful completion of the export orders, Markfed established a separate agency to capitalize on the opportunity abroad. "It's a kind of record for a government agency to procure and export a commodity in the first year," he said. Following the United States, the agency is now considering exporting the commodity to the European Union.
Tobacco is primarily grown in India's southern states of Karnataka and Andhra Pradesh, where the weather is favourable for the crop. Tobacco from India is known for its high quality, and the country ranks among the top revenue earners in the world.
