Export of raw tobacco rose by 29.50 percent in July-January of fiscal 2005-06 over same period of previous fiscal due to expansion of the global market because of reduction of subsidy by the developed countries, sources said, reports BDNEWS.
Bangladesh fetched US$ 12.16 million by exporting tobacco in the first seven months of current fiscal against $ 9.39 million in the corresponding period of the previous fiscal, the sources at the Export Promotion Bureau (EPB) said.
An official of the EPB said, export of raw tobacco had risen by 110 per cent to US$ 17.9 million in fiscal 2004-05.
"We are hopeful of further growth in tobacco export in the coming years," he said.
He said structure of global export market of raw tobacco is changing due to reduction of subsidy by the developed countries. The export of raw tobacco not only increased in Bangladesh, but also in Brazil, India and Pakistan, he said.
Besides, a 10 percent cash subsidy to tobacco exporters introduced last fiscal year under the incentive package for agricultural export also contributed to the growth in its export.
An official of the local tobacco industries said, European Union (EU) already reduced its 40 percent subsidy in the tobacco sector, which became effective form January 1, 2006. The subsidy will be totally withdrawn in 2010, he added.
The official said one of the multinational companies had a share of more than 70 percent in the total raw tobacco export in the last four years.
BAT, a multinational company, exports tobacco mainly to its EU's sister concerns that is why EU was a major destination for the export, he added.
Sources said phasing out of the quota on import of tobacco by the United States and similar actions by the Japan government also led to increase in export of the product from Bangladesh.
An EPB official said the export of tobacco has been growing steadily during the last four years. The price of tobacco has also increased in the global market besides the volume leading to higher growth in export value, he added.
Though the area of lands under tobacco did not increase, per acre yield of tobacco increased significantly in recent years. The tobacco producing companies have been playing a significant role in raising production.