Saturday, April 02, 2016

Tobacco and pictorial warning

 

All the major tobacco companies in India are going on for strike against the Govt policy of 85% pictorial warning on Cigarette packets.
It's time to review the Govt policy regarding Tobacco products.

Govt policy to discourage citizens from smoking is multifold
Pictorial warnings on the cigarette packs
Visual ads in TV and Cinema Theaters
Ban on advertisements on Tobacco products

The COPTA act which is enacted in 2003, bans the advertisement on any form of media for tobacco products and mandates a pictorial warning on the packages. And this is the act which banned public smoking . However, the ban is only limited to posters pasted on the walls.

In UPA Govt there is much objection on the smoking to the point of banning the usage of Cigarettes on silver screen. It's been repealed and got settled down to present day warning we see on the silver screen when the actor or actress smokes.

Since the NDA Govt came into power,  it's policy seems to levy more tax on the tobacco products on each budget.

COPTA act not implemented in many aspects. The act mandates the tobacco manufacturing companies to print nicotine and Tar levels on the each product. RTI reply to the question why it's not being implemented , is that the Government didn't have laboratory facilities to check if the manufacturers are printing the correct numbers or not.
The ban on advertisement of tobacco products had its impact on market in favor of old players. ITC, which maintains monopoly in the market , because of its distribution network , consumer base rules the market in urban areas. VFT, which sells low quality products which are cheaper than ITC products has its presence in sburban and rural areas.
The ban on advertisements resulted in near impossible situation for new players, leading to cartel formation by old players , which is never a favorable condition for the consumer in the liberal economy.

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