On the one hand the government had taken several steps to discourage smoking and chewing of tobacco by banning the practice in offices, public places and on airlines and not allowing advertisements promoting such products. But on the other hand it was welcoming MNCs into the country to expand the market and the biggest losers would be the Indian farmers and beedi workers, she informed presspersons here.

Not only was the amended policy made in great haste and that too to just one MNC, Rothmans, but it came only a day after the secretaries of the ministries of finance, industry and commerce advised on August 26 not to allow FDI of over 50 per cent, Chowdhury said.

Besides, the proposal would not benefit the country in any way. It would notlead to new investments, new technologies or additional employment but instead would displace beedi workers and farmers and many small domestic companies, she said.

The former minister observed that Indian companies use only Indian tobacco and support farmers and help them in times of calamities. When the Andhra crop was damaged due to a heavy cyclonic storm this year, domestic users came to the aid of farmers by buying most of the tobacco paying 30-35 per cent higher prices than the previous year. Foreign companies, on the other hand, did not buy tobacco this year because of the increased price, she said.

Chowdhury said she has written to the prime minister urging against the FDI due to various health reasons as well as livelihood threats to beedi workers and farmers.

Lessons could be learnt from countries like Japan where the entire tobacco has to be bought from Japanese farmers before imports are allowed and China, South Korea and Thailand which permit FDI in all sectors except tobacco, sheadded.