Unmanufactured tobacco and refuse market in India, 2026

Earlier Report Observations

From 2018 to 2020, the domestic market for unmanufactured tobacco in India expanded in volume, reaching 571 thousand tons. This growth coincided with strong export performance, particularly for Flue Cured Virginia tobacco used in cigarettes, which constituted a major share of shipments. Government support for the sector, including tax revenue collection and early stages of schemes to assist manufacturers, helped sustain production destined for both local and international markets.

Starting in 2021, the domestic market volume began a pronounced contraction, falling to 467 thousand tons by 2023. This shift was primarily driven by a powerful reorientation of the industry toward exports. Government policy, notably the extension of the Interest Equalization Scheme (IES) until 2024, reduced manufacturing costs for exporters, fueling a sustained export boom. Record export values of $1.5 billion were achieved in 2023-24, making India the world's second-largest exporter. This diverted a significant portion of production away from domestic consumption. During this period, new global product segments like tobacco-free nicotine pouches emerged, while impending EU sustainability standards presented a future regulatory challenge for the export-oriented model.

Production unmanufactured tobacco and refuse in India

In kind, 2017-2020, K t

From 2017 to 2020, India ranked as the world's third-largest producer of unmanufactured tobacco and refuse.

Top producers of unmanufactured tobacco and refuse, 2017-2020

World map of production of unmanufactured tobacco and refuse, 2017-2020

In 2020, India produced 740.1 K t of unmanufactured tobacco and refuse, marking a 0.9% decrease from the previous year. Production peaked in 2019 at 746.9 K t, with the largest annual increase of 0.4% also occurring that year.

Annual dynamics of production in India in kind, 2017-2020, K t

In value, 2017-2020, M $ US

India's production of unmanufactured tobacco and refuse declined for the third consecutive year. In 2020, the output was valued at 2 148 M $ US, down 3.6% year-over-year. Between 2017 and 2020, production fell by 10%, translating to an annualized decline of 3.5%.

Annual dynamics of production in India in value, 2017-2020, M $ US

Exports unmanufactured tobacco and refuse from India

Exports in kind, K t

India's exports of unmanufactured tobacco and refuse declined for the second consecutive year. In 2020, exports totaled 176.7 K t, a 5.0% drop from 2019. Over the period from 2017 to 2020, exports decreased by 7.5%, with an annualized rate of 2.6%. The highest export volume was recorded in 2018 at 194.3 K t, which also saw the largest increase of 1.7%.

Annual dynamics of product's exports from India in kind, 2017-2020, K t

From 2017 to 2020, Belgium, Egypt, and the United Arab Emirates were the largest buyers of unmanufactured tobacco and refuse from India, accounting for 22.9%, 8.9%, and 5.0% of exports in kind, respectively. Together, they made up 36.8% of total exports, with many smaller partners contributing to the remainder.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, M $ US

India's foreign supplies of unmanufactured tobacco and refuse declined for the third consecutive year. In 2020, exports amounted to 512.7 M $ US, reflecting a moderate 7.5% decrease from the previous year. Between 2017 and 2020, exports fell by 16.3%, with a compound annual growth rate of -5.8%.

Annual dynamics of product's exports from India in value, 2017-2020, M $ US

During 2017–2020, India's exports of unmanufactured tobacco and refuse in value terms were distributed across numerous markets. Belgium, Egypt, and South Korea were the top partners, accounting for 27.7%, 5.5%, and 5.2% of exports in value, respectively. Combined, they represented 38.4% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports unmanufactured tobacco and refuse to India

Imports in kind, K t

India's imports of unmanufactured tobacco and refuse increased for the third consecutive year. In 2020, imports reached 7.9 K t, a dramatic 181.1% rise from the previous year. From 2017 to 2020, imports surged by 439.7%, equating to an annualized growth rate of 75.4%.

Annual dynamics of product's imports to India in kind, 2017-2020, K t

From 2017 to 2020, China, Zimbabwe, and Brazil were the main sources for India's imports of unmanufactured tobacco and refuse in kind, accounting for 39.1%, 19.1%, and 7.9% of imports, respectively. Together, they comprised 66.1% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, M $ US

In 2020, India's imports of unmanufactured tobacco and refuse were valued at 19.8 M $ US, representing a 47.7% increase from the previous year. Over the period from 2017 to 2020, imports grew by 89.3%, with a compound annual growth rate of 23.7%. The largest decline occurred in 2019, with a 5.0% drop.

Annual dynamics of product's imports to India in value, 2017-2020, M $ US

Throughout 2017–2020, Zimbabwe, China, and Turkey were the key partners for India's imports of unmanufactured tobacco and refuse in value terms, accounting for 27.3%, 15.0%, and 13.3% of imports, respectively. Together, they made up 55.6% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020