Growers of tobacco split over FDI

Andhra tobacco growers are divided over allowing foreign direct investment (FDI) into the sector.

While Virginia Tobacco Growers Association; (VTGA) led by Y Sivaji, is demanding the government open the tobacco sector for global players, some of the farmers are vehemently opposing it. Both the groups are now preparing to present their arguments to the Union commerce ministry.

VTGA president Ch Ranga Rao claims that by allowing global players, there will be competition in the market. This would benefit tobacco growers, thus improving their income levels. ?Domestic players always manipulate prices, and in the bargain growers are paid un-remunerative prices,? Rao argues.

He suggested that if the government has any limitations on allowing FDI, they can allow 100% export oriented units in the form of SEZs, in the interest of tobacco growers.

To mount pressure on the government, farmers have taken up a signature campaign. ?We are collecting signatures from tobacco growers in favour of FDI,? Rao said.