New Delhi: Almost 45 million people’s life got affected and threatened who has been working in the tobacco production. The uncertain policy of pictorial warning on tobacco products influence the livelihood of these people as said ASSOCHAM in address to the Central government.
Due to high taxation only 11 per cent of total tobacco consumption has account legally in our country and it leads growth in sales of illegal cigarettes without pictorial health warnings .
There is loss of Rs. 350 crore each day due to the shutdown of tobacco production. As lack of clarity on proposed pictorial health warnings on tobacco items and opened floodgates in terms of illegal imports to the extent of 90 percent, apex industry body ASSOCHAM said today.
In its letter, ASSOCHAM has also pointed out that acute financial distress being faced by farmers engaged in tobacco farming had led to spurt in farmer suicide in major tobacco growing states of Andhra Pradesh, Karnataka and Telangana.
In India there are over 10 states are facing drought conditions and present situation will cause many farmers huge financial strain.
ASSOCHAM also highlighted that government exchequer was being denied one-fifth of total tobacco industry revenue i.e. worth over Rs. 9,000 crore which has led to sharp rise in seizure of contraband cigarettes thereby converting India into a major global hub for smuggled cigarettes.
Even retailers are forced to sell illicit, contraband and illegal, local and international brands of cigarettes to safeguard their livelihood.
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Highlighting the distinct deviation from global trends, ASSOCHAM letter noted that global average size of pictorial warnings on tobacco products is about 31 percent whereas as per the notification of union health ministry, tobacco products are required to have pictorial warning on 85 percent of packaging space.
“With such excessive warnings, cigarette packets will virtually become unbranded thereby giving a fillip to illegal and smuggled products,” it said. ASSOCHAM has thus urged the government to urgently look into the matter and take a balanced and moderate view on issue of graphic health warnings and policies do not fall prey to misinformation campaign led by people with vested interests that is only promoting illegal trade.
“Until the government has considered the Parliamentary Committee’s recommendations, it would be appropriate to retain current warnings so that the industry is able to resume operations and farmers do not lose their precious livelihood,” it further added.
