The government is considering a licensing policy for tobacco in a bid to control consumption and bring the largely unregulated business of products such as gutka and pan masala under some sort of government watch.
The Department of Industrial Policy and Promotion (DIPP) has started internal discussions on the policy implication of licensing for the sector that has been mired in strong political interests. “We will speak to the stakeholders to seek their views and understand if some regulation can be brought for this sector,” said a senior government official, who did not wish to be identified.
The deliberations follow sharp health and safety concerns raised by the health ministry over consumption of tobacco products and come ahead of the Conference of Parties (COP7) a global anti-tobacco conference to review the implementation of the World Health Organisation’s Framework Convention on Tobacco Control (FCTC) that is being held in India for the first time.
Cigarettes, which account for just 11% of overall tobacco consumption in India, are subject to significant curbs and disclosures to discourage consumption. The balance 89% includes traditional products such as chewing tobacco, bidi, khaini and illegal cigarettes, the consumption of which goes on without any warning.
“Organised players want some regulation in place...we are in favour of licensing but the condition of licensing should be practical and stakeholders should be consulted. Industry should be given time for implementation,” a Dharampal Satyapal group spokesperson said. The DS group is a leading players in tobacco products market.
“It is important to regulate this sector to control excessive growth as there are health hazards. It will also help in improving the working conditions of of labour which includes women and children even,” said DK Srivastava, chief policy adviser, EY.
No minimum support price has been declared for tobacco since 2008-09 in a bid to discourage production. Yet, in the past five years total tobacco production has grown at CAGR of 1.13%.
ET View: Regulation a Must
It makes sense to bring all tobacco products under a regulatory framework. Most of tobacco consumption takes place in the form of pan masala, gutka ets. Past efforts to regulate their sale have proven to be ineffective. Robust regulatory oversight would prove to be beneficial, given the health hazards posed by these products. It will also push the sector towards getting organised better. The government should not yield to pressure from tobacco lobby.
Source: Economic Times
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