The Tobacco Board Act, 1975

Summary of the Tobacco Board Act, 1975
Objective
The Tobacco Board Act, 1975 was enacted to establish the Tobacco Board for the development and regulation of the tobacco industry in India, particularly Virginia tobacco. The Act aims to promote the production, marketing, export, and quality improvement of tobacco while protecting the interests of tobacco growers and supporting the growth of the tobacco industry.
Key Provisions
• Establishment of the Tobacco Board: Constitutes the Tobacco Board as a statutory body to regulate and promote the tobacco industry.
• Development of the Tobacco Industry: Empowers the Board to promote tobacco cultivation, improve quality, undertake research, and encourage scientific methods of production and curing.
• Registration and Licensing: Provides for the registration of tobacco growers, curing barns, exporters, dealers, and manufacturers, and regulates their activities through licensing.
• Regulation of Production and Marketing: Authorises the Board to regulate the production, curing, grading, storage, auction, and marketing of Virginia tobacco to ensure quality and fair prices.
• Promotion of Exports: Empowers the Board to promote exports of tobacco and tobacco products, conduct market research, and develop new export markets.
• Finance and Administration: Provides for the Board's funds, accounts, audit, annual reports, and appointment of officers and employees.
• Penalties and Rule-making: Prescribes penalties for contravention of the Act and empowers the Central Government to make rules and the Tobacco Board to frame regulations for its effective implementation.

Legislative History: The Tobacco Board Act, 1975

Source: India Code Official Repository and Ministry of Commerce and Industry, Government of India Official Records

Key Legislative Metadata

Legislative Stage / Attribute Official Details

Short Title The Tobacco Board Act, 1975

Act Number / Year Act No. 4 of 1975

Act ID (India Code) 197504

Presidential Assent Date 19th March, 1975

Enforcement Date 28th August, 1976

Administrative Nodal Ministry Ministry of Commerce and Industry

Precedent & Statutory Rationale

• Background/Transition:

Prior to 1975, the regulation of tobacco cultivation, grading, curing, and export was handled by various advisory bodies and the Central Tobacco Committee, which lacked comprehensive statutory teeth to regulate production volumes or protect growers from market exploitation. With the global demand for Indian tobacco (especially Virginia tobacco) expanding rapidly, there was a pressing need for a centralized, empowered statutory authority to stabilize prices, regulate production according to international market trends, and maintain rigorous quality control standards for exports.

• Rationale/Objectives:

The Act was enacted by Parliament to provide for the development under the control of the Central Union of the tobacco industry and for the establishment of a Tobacco Board. Its core purpose was to regulate the production and curing of virginia tobacco, promote agricultural research, facilitate orderly marketing, ensure fair remuneration to tobacco farmers, and boost the export of quality tobacco products from India.

Parliamentary Trajectory & Legislative Milestones

• Formulation/Introduction:

Formulated by the Ministry of Commerce to overhaul the regulatory framework governing cash crops and secure a stable footing for Indian agricultural exports in international markets.

• Legislative Passage & Assent:

Passed by both Houses of Parliament during the winter/budget session of 1975 and received presidential assent on 19th March, 1975. (Note: The Act has been amended periodically to update board membership, address shifting trade agreements, and align with changing public health and agricultural policies).