Commerce and Industry Minister Nirmala Sitharaman said the complete ban on foreign direct investment (FDI) in the tobacco sector that her ministry has put before the Cabinet may affect growers, Press Trust of India reported.
FDI already is prohibited in the manufacture of cigarettes and other tobacco products. The new proposal would extend the ban to licensing of franchises, trademarks, brands and management contracts in the tobacco sector, the news agency said. Sithamaran reportedly said expanding the ban could impact tobacco farmers, “but we have to look at alternative crops for them which will give them a good yield.”
Share: