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takes steps to ease the legal woes of expatriates.
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INDIA
TODAY HINDI
CURRENT
ISSUE APRIL 28, 2003
BUSINESS: TOBACCO BILL
Smoked Out
The controversial bill places a blanket ban on
tobacco advertising but it may prove ineffective in curbing bidi and chewing
tobacco consumption.
By Rohit Saran
India's
estimated 20 million tobacco users may have missed the mother of all statutory
warnings. On April 9, the Cigarette and Other Tobacco Products Bill 2001
was quietly tabled in the Rajya Sabha and swiftly passed the same day.
For a bill that was in the making for 11 years-it was first proposed in
August 1992-that was surprisingly smooth sailing.
On the face of it, the bill is significant. It bans advertising of all
tobacco products throughout the country. That's a giant leap forward from
the Cigarettes Act of 1975 which restricted advertising and sale of only
cigarettes which account for less than 20 per cent of tobacco consumption
in India.
The bill, which is likely to be cleared by the Lok Sabha this month,
also provides for bigger and clearer display of health warnings, restricts
the sale of tobacco products in most public places and attempts to end
the existing legal discrimination between cigarette and other tobacco
products (see graphic). For instance, bidis-which have the largest share
of 45 per cent in total tobacco consumption-were so far exempt from carrying
the statutory health warning. The proposed law also puts India among the
front-running countries that have put a comprehensive ban on tobacco ads.
"It is one of the most progressive public health laws of recent times
in India," says Ambika Srivastava, who has been working on tobacco
related issues with the WHO.
That is as far as the letter of the bill is concerned. In its spirit,
however, the bill is softer on unorganised sectors of the tobacco industry.
At least that is what a section of the Rs 35,000-crore industry fears.
The skepticism stems from the unique consumption pattern of tobacco in
India. In developed countries, tobacco use is synonymous with cigarette
smoking. But in India, an estimated 80 per cent of tobacco consumption
is in the form of bidis and chewing tobacco. That would not have been
an issue if the tobacco industry was organised, making its regulation
easier. A large chunk of bidi and chewing tobacco manufacturing is a small-scale-in
some cases even a household-activity. Says Amit C. Sarkar, director of
the Delhi-based Tobacco Institute of India: "We will fully support
a legislation that is pragmatic. But the current bill has certain provisions
that are counterproductive in the Indian context and should be revised."
THE BILL ...
Bans all advertising and regulates sales of all tobacco products.
All tobacco products to carry text and pictorial health warnings.
All tobacco products to indicate nicotine and tar content on packaging.
Smoking and sale of tobacco banned in all public places.
Bans sale of tobacco products to persons under 18 and within 100
yards of educational institutions.
... AND ITS IMPACT
CIGARETTES: The Rs 10,000-crore industry fears it will suffer
at the expense of bidi and chewing tobacco makers on whom the law
will be lax.
BIDIS: Biggest segment of tobacco industry claims it is
being hit by the shift to cigarettes and chewing tobacco.
CHEWING TOBACCO: Few big players welcome bill but regulation
of the segment will be difficult.
ADVERTISING: Tobacco accounts for 9% of Rs 4,050-cr annual
print ad revenue.
MEDIA: Print media-especially
magazines-will take immediate hit.
The cigarette industry claims that by being stricter on them, the bill
will cause a shift of tobacco consumption from cigarettes to other forms.
Besides provisions like declaration of nicotine and tar content and display
of pictorial warnings will not apply to tobacco products not sold in packets.
Praful Patel, a Nationalist Congress Party member of the Rajya Sabha and
one of the biggest bidi manufacturers in the country, admits that the
bill's impact, in the first instance, will be greater on the cigarette
industry simply because it is more organised and spends a larger amount
on advertising. "Bidi industry is anyway being hit because urban
markets are shifting to cigarettes while chewing tobacco is becoming more
popular in rural areas," he points out.
The Health Ministry, which drafted and steered the bill, finds the law
non-discriminatory. In fact, the original bill tabled in the Rajya Sabha
in 2001 was applicable only to the cigarette industry. The revised bill
includes all tobacco products. "We are banning neither the production
nor the sale of tobacco products. The bill only prohibits advertising
and aims to create better awareness," says Bhawani Thyagarajan, joint
secretary in the Health Ministry. And since the consumption is aimed to
be curbed through a ban on ads, the impact on employment and tobacco farming
will be gradual.
The support of states will be key in the implementation of the bill,
especially on products other than cigarettes. And here the political clout
of big bidi manufacturers, especially in the states of Madhya Pradesh
and Maharashtra, could be a deterrent.
A segment of the tobacco industry that will be hit the least is chewing
tobacco. The organised players in the chewing tobacco industry though
promise to follow the new bill. "We will start printing nicotine
and tar content on all our tobacco products as soon as the law demands
it," claims Ashok Agarwal, president of DS Foods which owns brands
like Baba and Tulsi.
The bill also prohibits sale of tobacco products within 100 yards of
all educational institutions. It is a lofty provision since the sale of
tobacco products to minors is already prohibited. Besides, the definition
of an educational institution isn't clear-if it includes coaching centres
and cybercafes, then the bill could cover the whole of India.
The main weapon of the bill though is the ban on advertising. And the
key question is: do advertising bans reduce tobacco consumption? According
to who, the answer is yes. A study conducted by who shows that the ban
on tobacco advertising in Norway, Finland, New Zealand and Canada brought
down consumption by 4-9 per cent between 1977 and 1992. On the other hand,
the cigarette industry claims that in most countries cigarette consumption
has risen following advertising bans.
Whatever the argument and effectiveness, everybody has accepted the
reality of the ban. What is unclear though is the fate of surrogate advertising.
The bill proposes to "ban all direct and indirect" ads of tobacco.
Agarwal is in favour of an all-encompassing ban, but experts aren't sure
if surrogate advertising can be legally proven and prohibited. The Government
also needs to ensure that foreign tobacco companies don't sneak in ads
through the print and electronic media of countries where the ban is not
as rigorous as in India.
The tobacco industry's adspend is about Rs 350 crore a year-9 per cent
of the Rs 4,000-crore annual advertising in print media. Says Preet K.S.
Bedi, president-designate of ad agency Rediffusion: "The size of
advertising is a non-issue in deciding on ad bans on tobacco. Not because
the advertising size today isn't very big but because such bans are determined
by bigger and loftier factors."
In the end, the bill's worth will be tested on how uniformally it curbs
all forms of tobacco consumption.