Economic Affairs

Tobacco (Nicotiana tabacum) cultivation is a significant economic driver in India, making it the world’s second-largest producer with annual yield of about 0.8 million tonnes, despite using only 0.24% of arable land. This narcotic is well known for its ill effects on human as well as environmental health which necessitates enactment of several prohibitions on production and consumption of tobacco products worldwide. Using time series analysis, this study finds that despite implementation of multifarious tobacco control laws, tobacco acreage and production in post-enactment period are steadily rising at CAGR 0.5% and 3.2% respectively in Indian sub-continent. What will be the possible way out of this situation having the duality of health hazard and economic benefit? This study tries to throw some light on that and calls for a pragmatic approach on the part of concerned authorities (global as well as domestic) to deal with the tobacco economy as a whole.