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Tuesday,15-July-2025
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Extension of benefit under RoDTEP to tobacco sector will boost exports

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4 years ago

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cigarette

The Indian Tobacco Association has said that the extension of benefit under RoDTEP to the tobacco sector is eminently aligned to the objectives of the Foreign Trade Policy and also to have a level playing field to our products in the international market.

Export is a pre-requisite for the growth of any country. The Association said India has got advantage of wide range of soils and climatic conditions to produce different styles of tobaccos which can cater to the needs of different overseas markets.

There are several countries in the world whose economy is based on Tobacco like – Brazil, Zimbabwe, Malawi, Thailand, etc. India is, thus, well positioned to become a major player in the global tobacco market if it can harness the emerging opportunities through price competitiveness. However, steep increases in cost of cultivation, transportation and logistics has adversely impacted the price competitiveness of Indian tobacco.

The Association had said, “we had the opportunity to digitally participate in the Prime Minister’s interactive session. We were pleased to learn that the government is focusing on exports, with the Ministry of Commerce and Industry setting a target of a 30 per cent growth in Indian tobacco exports. In this regard, we also met with the Commerce Minister and the Secretary of the Commerce Ministry, and made our representations and workings through the Tobacco Board. Whereas, tobacco is not included in RoDTEP benefits, despite several appeals.”

The tobacco sector’s exports mainly include value-added products, such as flue-cured Virginia (FCV) tobacco (approximately 72 per cent of the country’s FCV production for export) and tobacco products, which bring the country US$ 900 million in foreign exchange each year. As there is no level playing field in the international market, India’s exports of unprocessed tobacco have fallen sharply.

Indian Unmanufactured exports in 2013-14 was worth Rs 4,850 cr with volume of 236 M Kg compared to Rs 3,780 cr with a substantially low volume of 169 M Kg in 2020-21, clearly indicates India’s fall in global markets. It is loss to entire FCV tobacco stake holder community as well as revenue loss to the Indian Government.

The global competitiveness of the Indian tobacco industry has also been severely affected due to factors like (i) Subsidies provided to tobacco in countries like Zimbabwe, Tanzania, EU, and the USA;(ii) A duty free regime in the EU for imports from least developed countries such as Bangladesh, Nepal, Malawi and so on; (iii) The prevalence of a Tariff Rate Quota in USA whereby the US market is accessible at a concessional import duty rate by countries like Argentina, Brazil, Thailand, etc while non-quota imports from countries like India are taxed at an ad-valorem rate of 350 per cent.

Consequently, the Indian tobacco sector is denied a level-playing field when competing globally with some of the major tobacco growing countries like USA, Argentina, Mozambique and Zimbabwe.

The stated objective of the Foreign Trade Policy in general, include enhancement of India’s export competitiveness by offsetting infrastructural inefficiencies and associated costs involved in export of goods and products, which are produced in India, especially those having high export intensity and employment potential.

Due to reasons stated above, extension of benefit under RoDTEP to the tobacco sector is eminently aligned to the objectives of the Foreign Trade Policy and also to have a level playing field to our products in the international market – Export incentive will boost the Forex and income generation to farmers.

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Tesla Mumbai Showroom Now Open, Bookings For Model Y Begin

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13 hours ago

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July 15, 2025

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Elon Musk’s Tesla has flagged off its India operations with its first showroom in Mumbai now open. The showroom is located in Mumbai’s premium Bandra Kurla Complex area. It will be showcasing the popular Model Y and Model 3 cars at the venue. Maharashtra CM Devendra Fadnavis arrived at the first Tesla showroom in India, to commemorate the occasion.

The new Mumbai showroom opening marks the entry of Tesla in India, one of the world’s fastest-growing automobile markets. The showroom, at Maker Maxity in BKC, is around 4,000 sq ft large and is said to cost Rs. 35 lakh per month. While customers will be able to book their cars starting today, delivery is said to commence sometime in August. Delivery and registration are only limited to Delhi, Gurugram and Mumbai for now.

The experience centre is located near the Apple flagship store in BKC. Tesla is said to open a showroom isn Delhi as well. While this is a soft launch, the company is expected to do a grand inauguration as well. To book the Model Y or the Model 3, consumers will need to head to the Mumbai experience store.

Musk’s company has imported all the cars fully assembled from China, paying heavy taxes (approximately 70 percent) on the same. The cars are said to be priced starting at around Rs. 40 lakhs in India.

The spotlight will be on the Model Y, which is the most popular variant of Tesla across the world. The SUV is available globally in two variants, Long Range RWD and Long Range AWD (Dual Motor). It claims to offer up to 574 km and goes from 0 to 100 kmph in just 4.6 seconds.

The Model 3, Tesla’s most affordable offering in the Indian market, will also be showcased but is expected to go on sale later in 2025. The top variant of the Model 3 clocks 0 to 100 kmph in 3.1 seconds, has a range of 507 km, and a top speed of 162 kmph.

Tesla India has reportedly leased a 24,500-square-foot space in Mumbai’s Kurla West to set up a service centre, located close to its upcoming showroom in BKC.

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Sensex Today: Markets Slip In Early Trade, IT Stocks & Foreign Fund Outflows Drag Indices

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2 days ago

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July 14, 2025

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Key Highlights:

– Sensex fell 232.93 points; Nifty dropped 71.4 points in early trade.

– IT majors like Infosys and Tech Mahindra among top losers.

– FIIs offloaded ₹5,104 crore worth of equities on Friday.

Mumbai: Benchmark indices Sensex and Nifty dropped in early trade on Monday amid selling pressure in IT stocks and foreign fund outflows.

The 30-share BSE Sensex declined 232.93 points to 82,267.54 in early trade. The 50-share NSE Nifty dipped 71.4 points to 25,078.45.

From the Sensex firms, Bajaj Finance, Infosys, Tech Mahindra, Bharti Airtel, HCL Tech and Asian Paints were among the biggest laggards.

However, Trent, Axis Bank, Mahindra & Mahindra and NTPC were among the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,104.22 crore on Friday, according to exchange data.

“Nifty has been exhibiting weak trend weighed mainly by the weakness in the IT stocks. This weakness may persist particularly since the FIIs were big sellers in the cash market last Friday. Market is expecting a US-India trade deal soon with a tariff rate of around 20 per cent for India. If this happens the market will get a sentimental boost. Any disappointment on this front can drag the market further down,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng were trading in the positive territory while Japan’s Nikkei 225 index quoted lower.

The US markets ended lower on Friday.

Global oil benchmark Brent crude climbed 0.17 per cent to USD 70.48 a barrel.

On Friday, the Sensex tanked 689.81 points or 0.83 per cent to settle at 82,500.47. Similarly, the Nifty dropped 205.40 points or 0.81 per cent to 25,149.85.

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Sensex Falls 689 Points, Nifty Drops 205 Points As Global Tensions & Weak TCS Earnings Hit Markets

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4 days ago

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July 11, 2025

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Key Highlights:

– Sensex falls 689.81 points and Nifty slips 205.4 points

– TCS reports weak Q1 FY25 earnings, dragging IT sector

– US-Canada tariff tensions dent global and domestic sentiment

Mumbai: On Friday, Indian stock markets closed in the red, pulled down by rising global trade tensions and a poor start to the earnings season. The Sensex fell by 689.81 points (0.83 percent) to finish at 82,500.47, while the Nifty dropped 205.4 points (0.81 percent) to end at 25,149.85.

TCS Results Shake Investor Confidence

The biggest trigger for the fall was Tata Consultancy Services (TCS) posting weaker-than-expected results for Q1 FY25. This caused a sharp selloff in IT stocks, with the Nifty IT index falling nearly 1.8 percent. Other IT firms like HCL Technologies also dropped.

Auto and Other Sectors Also Under Pressure

Auto stocks joined the decline, with the Nifty Auto index falling by nearly 1.8 percent too. Among the biggest losers on the Sensex were TCS, Mahindra & Mahindra, Tata Motors, Bharti Airtel, and Titan, losing up to 3.5 percent.

On the other hand, some stocks such as Hindustan Unilever, Axis Bank, Sun Pharma, and NTPC ended higher and provided limited support to the market.

Global Trade Issues Weigh Heavy

Investor mood worsened after US President Donald Trump imposed fresh 35 percent tariffs on Canadian imports, increasing concerns about global trade tensions. This added to already cautious market sentiment.

Mid and Small Caps Also Feel the Heat

The broader markets also saw declines. The Nifty MidCap index dropped 0.88 percent, and the Nifty SmallCap index slipped 1.02 percent, showing weakness across the board.

Some Sectors Show Strength

Despite overall weakness, FMCG and Pharma sectors managed small gains. The Nifty FMCG and Pharma indices ended in the green.

Volatility Increases Slightly

The India VIX, which measures market fear, rose 1.24 percent to close at 11.81, indicating slightly higher uncertainty among investors.

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