Last Tuesday, trade unions opposed the entry of foreign direct investment in the country's tobacco sector and asked the government not to carry out such plans.

In a letter to Prime Minister Manmohan Singh, five major trade unions (CITU, AITUC, HMS, TUCC and UTUC) said it was of 'immense worry' to learn that the Union commerce minister has been talking of allowing FDI in the tobacco sector and free entry to cigarette MNCs.
The trade unions are concerned that this measure would impact bidis and local cigarette producers. By introducing cheaper cigarettes, they fear, consumers might be enticed to switch over from bidis.
Also overrode by the trade unions was the argument that the entry of foreign investors would increase exports of tobacco products and offer better value for tobacco growers.
"The labour ministry has done studies on the issue MNC entry into the tobacco sector and concluded that this will have a devastating effect on employment amongst workers, farmers and labourers in India," they said.
"Tobacco is a sensitive sector. It employs millions of poor people. Any negative impact will destroy their lives and government has no social security net to help workers and farmers," they added.