NEW DELHI: Five central trade unions have urged the Government not to allow foreign direct investment (FDI) in the tobacco sector and ensure that multinational companies manufacturing cigarettes do not enter the Indian market. Their entry would directly affect bidi manufacturers and local cigarette producers.

In a representation submitted at the Prime Minister's Office here on Thursday, the CTUs said recent statements from the Commerce Ministry has caused immense worry as it had been talking of allowing FDI in the tobacco sector and free entry to foreign cigarette manufacturers.

India has the largest tobacco sector in the world and stability of this sector will allow employment levels to be maintained. Strangely, though India has the largest number of employees in the tobacco sector, an extreme anti-tobacco legislation has also been passed.

The multinationals will introduce cheap cigarettes and eventually take away bidi users through advertising and sales. The main objective would be to dominate the market and marginalise the local producers, the memorandum said. Experience has shown that multinationals create a monopoly for the buyer and this harms the local producers and farmers.

Once the foreign companies enter any sector, it is impossible to withdraw permission or curtail their activities. These companies slowly start demanding more concessions and use international media and other financial pressures to get what they want, the CTUs said.

Pointing out that India has anti-tobacco legislation, the memorandum said the Government was moving in the opposite direction by allowing FDI in the tobacco sector. By allowing multinational companies, use of tobacco will increase.

The bidi industry was already shocked over the mandatory labelling and pictures on all packets. FDI would be the ``last nail in the coffin.''

Tobacco sector employees millions of poor people and any negative impact would destroy their lives and the Government had no social security net to help workers and farmers.

The spate of suicide by farmers and bidi workers should caution the Government that there should be no experimenting on such socially sensitive sectors.

The Centre of Indian Trade Unions, the All-India Trade Union Congress, the Hind Mazdoor Sabha, the Trade Union Coordination Centre and the United Trade Union Centre signed the memorandum.

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