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ITC

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NSE:ITC   ITC LTD
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IMP Note for ITC :
“Committee thinks that the FDI in tobacco sector albeit in a regulated manner would stimulate the production and processing of Indian tobacco thereby boosting its export. The Committee, therefore, recommends the Department to undertake a study to analyse the prospects of opening FDI investments in the tobacco sector at the earliest,” the report states.

Currently, FDI is prohibited in the manufacturing of cigars, cigarettes and tobacco substitutes.

Quality tobacco at par with international standards is available in India at competitive prices and there is good potential for the export of Indian tobacco to China. The revival of the phytosanitary protocol with China will pave the way for a revival of Indian tobacco exports to China and prove economically beneficial to Indian farmers.

The report also recommended that the feasibility of having export-only tobacco farms may be looked into for promoting the cultivation of tobacco specifically for export purposes thereby generating a market surplus in tobacco exports from the country.

the trigger for ITC re-rating