AP farmers ask Centre to end ITC tobacco monopoly

New Delhi, June 16 (UNI) Making a demand for opening the tobacco industry to the foreign direct investment, Andhra Pradesh farmers have complained to the Centre that the largest cigarette-making firm, ITC Ltd has monopolised the procurement system to their detriment.

In their meetings with Minister of State for Commerce Jairam Ramesh at Ongole and Guntur districts, organised by the Tobacco Board, the farmers said there was no competition in the procurement system giving a monopoly advantage to ITC Ltd. Thus, they wanted opening of the FDI in the tobacco industry.

Mr Ramesh explained to them that since the tobacco was a de-merit industry, it would not be feasible for the Centre to allow FDI in the sector. However, the Minister asked the Tobacco Board to explore the possibility of introducing electronic auctioning on the lines of the Tea Board. He also assured the farmers that a meeting would be arranged with Chairman of ITC Yogi Deveshwar.

In the wake of the farmers' complaints against functioning of the Tobacco Board, the Minister said the Indian Institute of Management, Kolkatta would be entrusted with a study to suggest ways for improving the functioning of the board.

The IIM, Kolkatta has done similar studies for other commodity boards like the Rubber Board, Coffee Board and Tea Board.

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