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Agri-Biz & Commodities - Tobacco
Industry & Economy - Foreign Direct Investment
States - Andhra Pradesh
Tobacco growers meet PM with plea to allow FDI

Our Bureau

Guntur March 20 A delegation of tobacco farmers from Andhra Pradesh and Karnataka met the Prime Minister, Dr Manmohan Singh, in New Delhi on Tuesday along with some members of the Lok Sabha from Andhra Pradesh and asked for Foreign Direct Investment in the sector.

According to a statement issued by the President of the AP Tobacco Growers' Association, Dr Y. Sivaji, the delegation met the Prime Minister in the afternoon and submitted the representation. The farmers had stated in the representation that they were not getting their due and losing heavily, as the Centre was not allowing FDI in the sector.

The farmers, who had visited Zimbabwe and Brazil recently, said their experience in those countries have confirmed their opinion that the sector could be improved only if major MNCs were allowed to invest in the country; in the production, purchase and processing of tobacco. They should be allowed to set up cigarette factories.

`UNFAIR PRICES'

The representation said the Indian farmers were not getting even a dollar for a kg of tobacco on the auction floors in comparison with the farmers of other countries who were getting double the amount or even more in the West.

The monopolistic situation in the Indian market is hardly conducive for the farmer to get a fair price on the auction floor and the Indian trade was also not competitive in the international market in promoting exports. Therefore, the MNCs should be allowed to invest in the sector to address these problems, the representation said.

Dr Sivaji was a member of the delegation that met the Prime Minister.

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