Poetry Book Society, which administers the prize, that he is withdrawing his collection Armour from the running for the £15,000 award.
"I am grateful to Alice Oswald for bringing the sponsorship of the T.S. Eliot Prize to my attention," said Kinsella in a statement released by his publisher. "I regret that I must do this at a particularly difficult time for the Poetry Book Society but the business of Aurum does not sit with my personal politics and ethics. I am grateful to everyone at the PBS for all they have done to promote my work and that of poetry in general."
The Poetry Book Society negotiated the three-year sponsorship deal with Aurum earlier this year.
from Alison Flood: The Guardian: T.S. Eliot prize: Second poet withdraws in sponsor protest
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