No need for local partners, global firms can now bid in tobacco auctions

Move likely to provide relief to growers who suffered sharp fall in tobacco prices few years ago

The Government of India has decided to allow global companies to directly participate in the tobacco auctions.

The move is expected to increase the competition at the auction platforms in major FCV tobacco centers like Guntur in Andhra Pradesh where the tobacco growers faced a serious crisis due to the fall in prices a couple of years ago.

With this decision, global companies do not have to depend any more on a local partner or a local agent to buy tobacco leaf from India.

The government's decision covers a substantial portion of tobacco trade in India as 70 per cent of the FCV