Tobacco farmers argue for banning FDI but major firms warn of monopoly

Current rules prohibit a foreign entity from investing in the manufacture of all forms of smoking and chewing tobacco products, including cigarettes, bidis and cigars

Business chambers, farmers and cooperatives are divided on the matter of banning all forms of foreign direct investment (FDI) in the tobacco sector.

Two major players, ITC and Godfrey Phillips India, apart from farmer bodies, are on opposing ends of the debate, as were many stakeholders on Wednesday at a meeting organised by the department of industrial policy and promotion (DIPP) to discuss this.

Current rules prohibit a foreign entity from investing in the manufacture of any form of smoking or chewing tobacco product -- cigarettes, cigars, bidis or others. However, FDI is permitted in technology collaboration in any form,