Foreign buyers would ensure good prices at auction

The Indian Commerce Minister, Nirmala Sitharaman, has agreed to consider favourably a request to allow foreign buyers to participate directly in tobacco auctions, according to a story in the latest issue of the BBM Bommidala Group newsletter.

The belief is that the presence of foreign buyers would ensure that growers were paid a ‘good price’ for their tobacco.

At present, foreign buyers obtain their leaf needs through partnerships with local merchants.

The Mysuru-Kodagu (Karnataka) MP, Pratap Simha was quoted as saying that the minister had agreed to set up the necessary services to facilitate the participation of the foreign buyers.

The MP led a delegation to the ministry on behalf of tobacco growers in Karnataka and Andhra Pradesh.

The delegation included also the Tobacco Board chairman, K. Gopal, and MPs from Andhra Pradesh.

Meanwhile, the minister reportedly said that requests that foreign direct investments should be allowed in the tobacco sector would be explored.