In the letter, Surjit his alleged that transnational cigarette makers will import tobacco which will be "ruinous to thousands of our farmers and agricultural labour engaged in tobacco cultivation in the country."

Two left trade unions -- the Centre of Indian Trade Unions (Citu) and All India Trade Union Congress (Aituc) - along with the Bharatiya Mazdoor Sangh (BMS) and Hind Mazdoor Sangh (HMS) have also jointly submitted a memorandum to the prime minister.

The four central trade unions have opposed the industry ministry's decision to reverse the earlier policy and clear 100 per cent foreign equity in cigarette companies on August 27, which, they feel, has been done to favour the Rothmans proposal.

They have expressed concern atthe fact that only a day before, on August 26, the inter-ministerial committee -- comprising the secretaries of finance, commerce and industry -- had recommended a 50 per cent cap on foreign direct investment (FDI) in the sector.

Surjit, in the letter dated October 27, has requested Atal Behari Vajpayee "to urgently intervene to see that the industry ministry gives up its move to allow MNCs to hold 100 per cent equity for cigarette manufacturers."

The All India Bidi Cigar & Tobacco Workers Federation, which has received support from former union health minister Renuka Choudhary of Telegu Desam, has threatened to `gherao' the parliament during the winter session if Rothmans' proposal is cleared by the FIPB.

Till recently, multinational cigarette companies were allowed to enter India only through the joint venture route, and had to meet export obligations to balance out the forex outflow of the ventures for the first seven years of their operations.

Only three multinationals have equity in Indiancompanies -- British American Tobacco (BAT) in ITC and VST, Phillip Morris in Godfrey Phillips, and RJ Reynolds with the MK Modi group, which is yet to commence operations.

Renuka Choudhary, in an exclusive interview with The Financial Express, said: "Cigarettes is a non-priority sector. The government has no business to allow 100 per cent FDI in the sector."

Choudhary demanded that even if foreign companies were allowed with a minority stake, the indigenous content of tobacco blend should not be allowed to drop below 80 per cent.

The commerce ministry has reportedly insisted that Rothmans export whole cigarette against its tobacco imports which would mean that the company is allowed to set up shop and will have to invest in a manufacturing facility.