| Date: |
14-03-2012 |
| Subject: |
Commerce Ministry seeks view on cigarette imports |
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NEW DELHI: The Commerce Ministry has sought opinion from finance and industry ministries over a demand from tobacco farmers association to tighten import of cigarettes into the country.
In an inter-ministerial communication, the Directorate General of Foreign Trade (DGFT) has pointed out that Consortium of Indian farmers Associations (CIFA) has demanded to remove import of cigarette under open general license (OGL).
"The association has pointed out alarming increase of imports due to OGL and also growth of smuggled and controlled cigarettes resulting in Indian tobacco farmers are getting low price for their product. CIFA has therefore requested to remove import of cigarette under OGL," the DGFT has said.
India's cigarettes import has increased to Rs 5,548.85 lakh in 2010-11 from Rs 4,773.77 lakh in 2009-10.
During April-June this fiscal, imports stood at Rs 1,837.65 lakh.
CIFA in its letter to the Commerce and Industry Minister Anand Sharma has said that international cigarette makers are trying to push their surplus production into India through legal and illegal routes.
"It appears that in the recent past, cigarette imports in to our country is alarmingly increasing since the cigarettes are classified under OGL. Further, we have also came to know that under the garb of import of legal cigarettes, the growth of smuggled and contraband cigarettes which is estimated to be around Rs 1,900 crore this year," it said.
The association said that according to reports, 17 billion cigarette sticks are smuggled into Indian every year, making it the sixth highest consumer of smuggled cigarettes in the world.
"Domestic manufacturers who are totally depending on domestically grown tobacco are not able to utilise more of our tobacco due to increase in legal and illegal import of cigarettes," it added.
Further, it said that the huge price differential between India and neighbouring countries is also one of the reasons for the increase in smuggling of cigarettes.
Source : economictimes.indiatimes.com
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