The purpose of the research - is the assessment of the current state of increasing production and export of tobacco products in Azerbaijan, identifying reserves, studying the directions of industrial substitutes for tobacco, its import and export and processing regulation.

The metodology of the research - is conducted in accordance with the State Program on Tobacco Development in the Republic of Azerbaijan for 2017-2021, Strategic Roadmap for Production and Processing of Agricultural Products in the Republic of Azerbaijan, Law on Tobacco and Tobacco Products, relevant normative documents, the works of economists and researchers in agrarian sphere.

The practical importance of the research - the main provisions of the study, as well as its motivated proposals can be used in improving the application of economic instruments to boost tobacco production and tobacco processing in the regions, and in increasing the efficiency of the industry by exporting.

The results of the research – the research shows that smoking development can be achieved by eliminating unresolved problems in tobacco use. First of all, for increasing productivity, there should be created new productive, disease-resistant tobacco varieties and infrastructure for tobacco production and processing should be  improved. The introduction of innovative technologies in the field of tobacco production and processing, human resource capacity should be strengthened, scientific support should be improved, stations of acceptance tobacco and drying chambers should be established in the regions.

The originality and scientific novelty of the research - the article evaluated the impact of tobacco growing on the growth of non-oil exports, and there was made suggestions on ways to increase tobacco production and exports. The role of the State Program in increasing the state support in the development and economic regulation of import-export of tobacco growing was evaluated. The study offers suggestions for the creation of new varieties to enhance tobacco production, improvement of infrastructure in tobacco production and processing, introduction of innovative technologies in the field of production and processing and for improving production and export stimulation. The research is based on specific facts and existing regulatory documents.

Keywords: agriculture, tobacco, processing, export, import, competition, Strategic Roadmap.