Tobacco sector in terms of total economic value generates at a whopping Rs 11,79,498 cr

Tobacco sector in terms of total economic value generates at a whopping Rs 11,79,498 cr

Agency News

Kolkata, May 30: TARI (Thought Arbitrage Research Institute) on Wednesday shared its study with ASSOCHAM, stating that as per an economic metric model it has measured the total cumulative intrinsic economic value generated by a sector
over the years.

This model is developed by combining financial reports, econometric and  statistical methodologies, as per the TARI study shared with the ASSOCHAM. Applying this model to the Indian tobacco sector the figure is a whopping Rs 11,79,498 crores as the total cumulative intrinsic economic value generation by the sector.

The study said, “Tobacco sector was chosen as the subject of the study because of its spread right from the farms to the local and the international markets. It cuts across a diverse set of constituents across its entire value chain ranging from farmers who are involved in its cultivation along with farm workers and labourers, the processing units, the transporters, trade channel, manufacturing units, brand owners as well as the exports operations given its lucrative exports status.”

According to Kshama V Kaushik, Director, TARI, the research firm which has conducted the study, “One of the important aspects of this study is that for the first time the economic contribution made by the tobacco sector to India’s economy has been quantified. While doing this, the benefits accrued to all the stakeholders in the value chain have been taken into consideration.”

It becomes important to assess the total economic value generated by the tobacco sector in the debate on livelihoods for the people who derive their life’s dependence on the crop, which the present study addresses suitably by assessing
the quantifiable economic contribution of the tobacco sector to the country’s economy.