The Hindu : Andhra Pradesh News : China keen to import tobacco

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Saturday, Jan 12, 2008
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Andhra Pradesh

Andhra Pradesh

China keen to import tobacco

M. Venkateswara Rao

ONGOLE: After a gap of 25 years, China has agreed to buy Indian tobacco. But there is a hitch. China wants the Indian Government to settle the export scandal case of 1982, according to Chunduri Ranga Rao, president of Andhra Pradesh Virginia Tobacco Growers Association.

Speaking to The Hindu here on Friday, Mr. Rao said that he gathered this information from top officials in the Union Commerce Ministry during his recent visit to New Delhi. The officials informed him that China was willing to buy 15,000 to 20,000 tonnes of tobacco from India and was keen on reaching an agreement to this effect during the Prime Minister`s visit to China.. But China desires that the exports scandal case be settled in the mean time to pave way for it to re-enter Indian tobacco market.

Mr. Rao recalled that following crop failure in China in 1982, there was sudden spurt in the demand for Indian tobacco. China placed huge order with Indian exporters. Some exporters based in Guntur district exploited the situation to their advantage, he alleged. They passed off most inferior, degraded and waste tobacco as high grade tobacco. They mixed turmeric leaves in their tobacco consignments and even placed stones to make up for the weight!

It took serious note of the scandal, ordered inquiry and executed two Chinese buyers for colluding with Indian exporters. Mr. Rao alleged that the Indian Government, on the other hand, did not take any action against the concerned exporters who patronised some political parties and got suitably rewarded.

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