PMO Seeks Impact Assessment on Complete FDI Ban in Tobacco Sector

Mint · business

The Prime Minister’s Office is evaluating the potential impact of a complete ban on foreign direct investment (FDI) in the tobacco sector. A recent meeting, attended by senior officials, tasked the Department for Promotion of Industry and Internal Trade with examining the implications for tobacco farmers, especially in major producing states like Andhra Pradesh and Karnataka. While FDI is already restricted in cigarette manufacturing, technology collaborations are permitted. This consideration comes amid falling tobacco procurement prices and appeals for government support for growers.