Tobacco growers demand for FDI

Guntur, Andhra Pradesh, Mar 28 (UNI) In response to tobacco growers incessant demand, the Government of India has allowed Foreign Direct Investment (FDI) in the tobacco processing sector.

Ex-Rajya Sabha Member and President Virginia Tobacco Growers' Association Y Shivaji received a copy of the communication from the Union Ministry of Commerce and Industry.

It may be recalled that about 150 tobacco growers from Andhra Pradesh led by Dr Shivaji called on the Prime Minister and the Union Minister for Commerce and Industry in New Delhi about 15 days ago and pleaded for allowing FDI in tobacco manufacturing sector.

Dr Shivaji told reporters here today that Indian tobacco growers were getting one dollar per kg of tobacco, against two dollars per kg by counterparts in Brazil and Zimbabwe, though Indian tobacco was a match to that in quality, especially colour, texture, flavour, nicotine and sugar content.

This, he attributed to the presence of foreign cigaratte manufacturing factories in Brazil and Zimbabwe.

India was exporting raw tobacco while Brazil and Zimbabwe were exporting value added products. 'In the last 10 years, cigaratte prices in India rose by three times but prices of tobacco stagnated at Rs 40 per kg', he lamented.

Dr Y Shivaji feared vested interests might prevent entry of FDI.

UNI