MUMBAI, Jan 28 (Reuters) - India's tobacco exports surged 46 percent to $543.6 million in first nine months of fiscal 2008/09, as output cuts in Europe forced overseas buyers to source more produce from the country at a higher price, a top official said.
In April-Dec 2007, the country had shipped unmanufactured tobacco and tobacco products worth of $373.4 million.
"Many countries, especially European, are cutting production to cut tobacco consumption. This is benefiting Indian exports," J Suresh Babu, chairman of the Tobacco Board, told Reuters on Wednesday.
The output cuts are forcing tobacco companies to purchase the Indian leaf at higher price, he said.
In quantity terms, exports rose 13 percent to 173,484 tonnes, compared with 153,991 tonnes in the same period a year ago.
Strong export demand pushed up tobacco leaf prices in Indian spot markets.
In the southern state of Karnataka, a major producer, average price of premier grade Flue Cured Virginia (FCV), used for cigarette-making, was 110 rupees ($2.25) per kg last week, up 86 percent from last year's average price of 59 rupees.
Source : REUTERS INDIA