Press Information Bureau

Government of India

Ministry of Commerce & Industry

14-May-2012 16:41 IST

The tobacco farmers are getting adequate incentives from Government to increase productivity in the cultivation of FCV tobacco.

The existing barn capacity is adequate for curing the crop size authorized for production by the Tobacco Board.

Several measures have been taken to help tobacco farmers in Karnataka and other areas to compete with foreign tobacco growers. These measures include introducing mechanization in certain operations of tobacco cultivation to help farmers overcome labour shortages and cut costs, introducing mechanical transplanters to help farmers overcome labour shortages, encouraging growers to use hybrid seeds for enhancing productivity and quality and educating growers on good agricultural practices in tobacco cultivation. The Tobacco Board arranges to supply pure and certified tobacco seeds, Bio/organic fertilizers, Yellow sticky traps, Cocopeat, Bio-organic/Bio-fungicides to the registered FCV tobacco growers free of cost or on subsidized rates to ensure better yields.

As per Press Note No. 2 (2010) series issued by the department of Industrial Policy & Promotion, FDI is prohibited in manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.

Department of Commerce has no such information. regarding clandestine account inflows in the guise of marketing services by subsidiaries or group of companies floated by global tobacco firms.

This information was given by Shri Jyotiradiya M. Scindia, Minister of State for Commerce & Industry in written reply to a question in Lok Sabha today.

DS/GK

FDI prohibition in cigarette and cigar manufacture remains while government provides mechanisation and input subsidies to FCV tobacco growers. The Government supports registered FCV tobacco growers through mechanisation, promotion of hybrid seeds, training in good agricultural practices, and provision of certified seeds and bio-organic inputs free or at subsidised rates; the Tobacco Board oversees authorised production and existing barn capacity is adequate. FDI prohibition applies to manufacture of cigars, cheroots, cigarillos and cigarettes of tobacco or substitutes, and the Department reports no information on clandestine account inflows disguised as marketing services.