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Foreign buyers may have an opportunity to participate in tobacco auctions from next year in Mysuru district.
An assurance to this effect was given by Union Commerce Minister Nirmala Sitharaman on Wednesday, according to Mysuru-Kodagu MP Pratap Simha.
A delegation led by Simha and Andhra Pradesh MPs met the minister in New Delhi on Wednesday on behalf of tobacco growers in Karnataka and Andhra Pradesh. The team told her of her the problems faced by the cultivators, which included a fall in prices this year.
“The talks were fruitful,” a release from the MP said here. The Union Minister had responded favourably to the appeal to permit foreign buyers to participate in the tobacco auctions so that the growers can get good prices. She agreed to set up the necessary facilities for foreign buyers to participate in tobacco auctions, he said.
The delegation took up their cause as hundreds of tobacco cultivators were worried about the fall in prices and ban on tobacco. The delegation included Tobacco Board Chairman K Gopal and Andhra MPs.
The minister responded favourably to their request that tobacco should not be banned until the farmers took up cultivation of alternative crops. Simha said tobacco cultivation would not be banned under any circumstances sacrificing the interests of growers. In order to secure good prices, foreign buyers would be invited to make purchases by creating required facilities.
MPs from Karnataka and Andhra said, foreign buyers would take part only from next year, Simha said.
Reacting to the plea that the tobacco sector being an industry, foreign investments should be permitted, the minister had promised that the government would consider the same in due course.
She also agreed to direct the Tobacco Board to reduce the penalty of Rs 18 per kg collected from tobacco growers in Mysuru District. Simha asked for a cut in the penalty in view of the increased cost of cultivation the growers were facing.
The participation of foreign buyers would help create competition between Indian and foreign buyers and end the harassment by middlemen. This would benefit farmers to get good rates, it was said at the meeting.
Simha expressed happiness over the fruitful discussions with the Union minister and said efforts would continue to get good prices for tobacco cultivators.
