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Tobacco IndustryTobacco IndustryAn Overview of the Tobacco Industry inAn Overview of the Tobacco Industry in

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History of TobaccoHistory of Tobacco

Tobacco was discoveredby Native Americans inthe Americas and wasspread to the rest of the

world when Columbusbegan his exploration ofthe New World.

Tobacco took the world bystorm and has continued

throughout the years to bea popular cash cropbecause of its highdemand.

Tobacco was invented byJean Nicot in 1561.

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Tobacco ProductsTobacco Products

Most common uses for tobacco are:

Cigarettes Chew

Kreteks (Clove cigarettes) Snuff (Dip)

Cigars Homemade pesticide

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Tobacco Use in India

India has myriad varieties of tobacco use (smoking, inhaling and

chewing forms).

Only about 14% of total tobacco consumption is in the form of

cigarettes in India.

Beedis account for the largest proportion of tobacco consumption in

India (about 40%).

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Tobacco Use in India

Male Female

Residence Chew

Tobacco

Currently

Smoke

Chew

Tobacco

Currently

Smoke

Rural 31.3 32.6 13.8 3.1

Urban 20.8 21.4 8.8 0.9

Total 28.3 29.4 12.4 2.5

Percentage of household members above 15 years af

age who currently chew tobacco or smoke by gender

2009-2010.

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Employment Structure: Indian Tobacco Industry

Production of beedis dominates employment opportunities within the

manufacturing sector of the domestic industry.

Vast majority of employment position are available either on a part

time or a seasonal basis.

Full time employment: Leaf processing, cigarette manufacturing,distribution and retailing.

Beedi manufacturing employs about 72% of the total tobacco industry

employment as compared to cigarettes (1%)and other products (1%).

Indian Tobacco Industry:Employment & Policy Issues

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India: Tobacco IndustryIndia: Tobacco Industry

Production 90 Billion

Imports 200 Million

Exports 1.5 Billion

Tobacco Industry

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Tobacco ProcessingTobacco Processing

CURINGCURING -- Curing and subsequent aging allowCuring and subsequent aging allowfor the slow oxidation and degradation offor the slow oxidation and degradation ofcarotenoids in tobacco leaf.carotenoids in tobacco leaf.

This produces certain compounds in theThis produces certain compounds in thetobacco leaves, and gives a sweet hay, tea, rosetobacco leaves, and gives a sweet hay, tea, rose

oil, or fruity aromatic flavor that contributes tooil, or fruity aromatic flavor that contributes tothe "smoothness" of the smoke.the "smoothness" of the smoke.

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CuringMethodsCuringMethods

1.1. AIR CUREDAIR CURED

Tobacco is hung in wellTobacco is hung in well--ventilated barns and allowedventilated barns and allowed

to dry over a period of four to eight weeks.to dry over a period of four to eight weeks.

AirAir--cured tobacco is low in sugar, which gives thecured tobacco is low in sugar, which gives thetobacco smoke a light, sweet flavor, and high intobacco smoke a light, sweet flavor, and high innicotine.nicotine.

ExEx-- Cigar and Burley tobaccosCigar and Burley tobaccos

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AIR CURINGAIR CURING

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2.2. FIRE CUREDFIRE CURED

Tobacco is hung in large barns where fires ofTobacco is hung in large barns where fires ofhardwoods are kept on continuous or intermittent lowhardwoods are kept on continuous or intermittent lowsmoulder and takes between three days and ten weeks,smoulder and takes between three days and ten weeks,

depending on the process and the tobacco.depending on the process and the tobacco.

Fire curing produces a tobacco low in sugar and high inFire curing produces a tobacco low in sugar and high innicotine.nicotine.

ExEx--Pipe tobacco, chewing tobacco, andPipe tobacco, chewing tobacco, and snuffsnuff

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FIRE CUREDFIRE CURED

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3. FLUE CURED3. FLUE CURED

Tobacco was originally strung onto tobacco sticks, which wereTobacco was originally strung onto tobacco sticks, which werehung from tierhung from tier--poles in curing barns.poles in curing barns.

These barns have flues which run from externally fed fire boxes,These barns have flues which run from externally fed fire boxes,heatheat--curing the tobacco without exposing it to smoke, slowlycuring the tobacco without exposing it to smoke, slowlyraising the temperature over the course of the curing. Theraising the temperature over the course of the curing. Theprocess will generally take about a week.process will generally take about a week.

Produces a tobacco that is high in sugar and has medium to highProduces a tobacco that is high in sugar and has medium to highlevels of nicotine.levels of nicotine.

ExEx-- Cigarette TobaccoCigarette Tobacco

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FLUE CUREDFLUE CURED

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4. SUN CURED4. SUN CURED

Tobacco dries uncovered in the sun. ThisTobacco dries uncovered in the sun. Thismethod is used in Turkey, Greece and othermethod is used in Turkey, Greece and otherMediterranean countries to produce orientalMediterranean countries to produce orientaltobacco.tobacco.

SunSun--cured tobacco is low in sugar and nicotinecured tobacco is low in sugar and nicotine

Mainly used in cigarettesMainly used in cigarettes

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ConsumptionConsumption

BeediBeedi

Chewing TobaccoChewing Tobacco

CigarsCigars

CigarettesCigarettes

GutkaGutka

HookahHookah

Roll your ownRoll your own Pipe smokingPipe smoking

SnusSnus

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Competitive EnvironmentCompetitive Environment -- IndiaIndia