Cigarette manufacturers in the country are gearing up for a showdown with the government over pictorial warnings on packs. The Tobacco Institute of India (TII) which represents companies that account for 98 per cent of sales said that due to ambiguity on the policy related to graphic health warnings on tobacco, the industry has decided to shut down. This would result in an estimate loss of Rs 350 crore per day. The new rules introduced by the government mandate that pictorial warnings should cover 85 per cent of the packaging and cigarette companies are of the view that this will adversely affect the industry and farmers. Companies pointed out that a committee on subordinate legislation of the Lok Sabha had recommended and increase from the existing 40 per cent to 50 percent of two sides of the packets, but that 85 per cent would be too harsh.
What is at stake here is health of smokers, the cigarette industry and tobacco farmers. India is the third largest producer of tobacco in the world after Brazil and the US. In the year 2014-15 the country exported tobacco products valued at nearly one billion dollars. According to the Tobacco Board of India the national exchequer earns nearly Rs 20,000 crore per year through taxes and excise duties. According to the Central Tobacco Research Institute, tobacco provides livelihood security to over 36 million people. This includes six million farmers, mainly in Andhra Pradesh and Karnataka, 20 million farm labourers and another 10 million people in the processing industry. Various government agencies have instituted a series of incentives and subsidies to help tobacco farmers and any downsizing of the industry will first affect farmers and tribal populations which are dependent on the trade and exports. Incidentally, tobacco was introduced in the country by the Portuguese in the 17th century.
The health risks of smoking have been well established and there are several studies which emphasise the connection between lung and oral cancer and tobacco use. The health warnings are apparently being used to reduce use of cigarettes and other tobacco products and there are studies to prove that pictorial warning have a large impact than text. Australia has one of the harshest regimes with pictorial warnings covering 75 per cent of the front of the pack and 90 per cent of the back. But it was easy for the Aussies to take this decision as tobacco farming was phased out in 2006 through hefty payouts to farmers. In neighbouring Bangladesh the rule is that text warnings should cover 30 per cent of the front and back of the pack. In Brazil, 50 per cent of the entire pack is reserved for health warnings and in the US 50 per cent of the front and back are used for pictorial warnings. In comparison the new regulations in the country mandate that 85 per cent of the pack be covered by pictorial warnings.
Tobacco cultivation and use forms a significant part of the economy and attempt to downsize could seriously affect the industry and farmers. While an attempt to reduce tobacco use is desirable chiefly because of the health problems it creates and diversions of resources towards healthcare, a holistic approach is required. One cannot have a policy that seeks to reduce use at one end while encouraging growth at the other through subsidies and welfare measures. If use of tobacco is to be curbed then the government will have to first work out a comprehensive package to encourage farmers to shift to other crops before attempting to hit cigarette manufacturers. The government has to tackle both ends of the tobacco producing system if it wants to win the healthcare war.
