The European Commission said on Thursday it had fined four Italian tobacco processors a total 56 million euros (US$ 67.1 million) for colluding for six years on prices paid to growers and on supply arrangements.

The Commission said it would fine Deltafina, a unit of US company Universal Corporation, 30 million euros and Dimon, which has now changed its name to Mindo, will have to pay 10 million euros.
Transcatab, a unit of the US-based Alliance One International was fined 14 million euros and the family owned firm Romana Tabacchi is to pay 2.05 million euros.
"Cartel culture must be eradicated from all sectors and agriculture is no exception," said EU Competition Commissioner Neelie Kroes. She noted that the Commission fined five Spanish tobacco processors last year and that Italy was the largest producer of raw tobacco in Europe.
The Commission statement said Italy's top tobacco processors colluded on overall purchasing strategy, agreeing purchasing prices and allocating their suppliers on a preferential or exclusive basis. The Commission said it also imposed small fines on APTI and UNITAB, the trade associations representing Italian processors and tobacco growers respectively. (pi)