Introduction.In the solution of marketing problems in the different crops,the study of the exist- ing trade with special refrence to general world position occupies an important part.With the exception of United States of America.India is the largest production of tobacco of commerce. Madras occupies the premier position among the provinces.In response to the prefrence for Empire tobacco accorded in 1919 and subsquently in 1925 there has been a corresponding increase in acreage and production.though not in the quality of the product,the character for which this commodity is most valued.:consequently India has not derived as much benefit out of the prefrence as was expected.As the balance of trade in tobacco is unfavourable considerat- ion of the external trade in this commodity with other countries requires earlier attention than that of the internal trade,
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