Farmers' body FAIFA today asked the government to investigate the possibility of involvement of multinational tobacco firms in cigarette smuggling in India.
Federation of All India Farmer Associations (FAIFA), General Secretary Murali Babu alleged that "some multinational tobacco firms were using all possible means to mislead policy makers" and downplay problem of smuggled cigarettes in India.
In a statement, he said these overseas firms were pushing for a policy that "makes their business more profitable, be it through excessive regulations, high tax arbitrage or downplaying the problem of smuggled cigarettes".
This is being done to divert the attention of the government agencies, which are tracking and seizing smuggled cigarettes, he added.
"We therefore appeal to the government to clamp down on the vested interests, who are encouraging smuggling of cigarettes and take all possible policy measures to control the menace of smuggling," Babu said.
In a letter to Prime Minister Narendra Modi, Babu stated that "the domestic (cigarette) industry volumes have dropped from 106 billion sticks in 2012-13 to 81 billion sticks in 2016-17."