MAPPING OF TOBACCO VALUE CHAIN: SCOPE AND OPPORTUNITIES

Abstract

Flue Cured Virginia (FCV) tobacco, a significant commercial crop, plays a vital role in the Indian economy by providing employment, livelihood security, contributing agri-exports, and foreign exchange earnings. In this study, the value chain model for Indian FCV tobacco is identified. The objective of this study is to examine, comprehend, and map the value chain and its essential roles in the system. There are several production and processing steps in the input-output structure of the FCV tobacco value chain, and these typically take place in several geographical regions. The supply of inputs, farm production, harvesting and curing, post-harvest processing, marketing, manufacturing, and domestic commerce and exports are the seven essential components of the tobacco value chain. While traders and national and international businesses often operate in the highest-value sectors of the value chain, the key stakeholders, the farmers, are located in a low-value segment. When the value of all the operations throughout the value chain is added together, it becomes clear that the manufacturers, exporters, and processors are the ones that benefit the most from the tobacco sector. As a result, there is a great need to include growers in the value chain and look at ways to strengthen the FCV tobacco value chain in order to raise income levels of all the stakeholders involved.