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Former health minister lambastes move to allow FDI in tobacco industry

Former minister for health and family welfare Renuka Chowdhury has criticised the decision to allow 100 per cent foreign direct investment in the cigarette industry.

She said the government had taken several steps to discourage smoking and chewing of tobacco by banning the practice in offices, public places and on airlines and not allowing advertisements promoting such products.

But, she pointed out, the government was now welcoming multinational corporations to expand the market. The biggest losers would be the Indian farmers and beedi (country cigarettes) workers, she said.

Not only was the amended policy made in great haste, and that too to for just one MNC (Rothmans), it came only a day after the secretaries of the ministries of finance, industry and commerce advised on August 26 not to allow FDI of over 50 per cent, she pointed out.

Besides, the proposal would not benefit the country in any way. It would not lead to new investments, new technologies or additional employment but instead would displace beedi workers and farmers and many small domestic companies, she said.

The former minister observed that Indian companies use only Indian tobacco and support farmers and help them in times of calamities. When the Andhra crop was damaged due to a heavy cyclonic storm this year, domestic users came to the aid of farmers by buying most of the tobacco paying 30 to 35 per cent higher prices than the previous year. Foreign companies, on the other hand, did not buy tobacco this year because of the increased price, she said.

She has written to the prime minister urging against the FDI due to various health reasons as well as livelihood threats to beedi workers and farmers.

Lessons could be learnt from countries like Japan where the entire tobacco has to be bought from Japanese farmers before imports are allowed and China, South Korea and Thailand which permit FDI in all sectors except tobacco, she added.

UNI