Category: News This Week

  • Tobacco growers launch petition against FCTC’s ‘destructive proposals’

    The International Tobacco Growers’ Association (ITGA), representing more than 30 million tobacco farmers worldwide, on Wednesday reacted with outrage to the publication of new proposals to regulate tobacco farming by the World Health
    Organization’s Framework Convention on Tobacco Control (FCTC).

    The ITGA has vowed to rally governments to oppose the measures.

    “By suggesting governments phase out tobacco growing, these ideological recommendations put the jobs of more than 30 million farmers at risk without providing them with any economically viable alternative crops,” said Antonio Abrunhosa, the chief executive officer of the ITGA.

    “The WHO has consistently refused to listen to tobacco growers in drafting the proposals that directly impact this industry. By doing so, they’ve become like a blind man driving a steamroller.”

    The ITGA said that the current proposals went far beyond the FCTC’s original mandate.

    They were designed to force tobacco growers out of business by creating artificial restrictions on tobacco supply while failing to address the growing demand for the crop. This was being done through recommendations that sought to:

    * Restrict production by regulating the seasons during which tobacco could be grown;

    * Reduce the area allocated for tobacco farming; and

    * Ban financial or technical support for tobacco farmers.

    ‘More absurd and discriminatory recommendations, such as banning contracts between farmers and their clients or banning bank loans to tobacco growers were already refused by governments from tobacco growing countries, but may be proposed again at the next Conference of the Parties (CoP5), which takes place in Seoul from November 12th – 17th, 2012, an ITGA press note said.

    To rally governments worldwide in opposition to the measures, the ITGA is launching a global petition campaign, available online and through growers’ associations.

    The petition calls on government leaders to: “Reject these irrational and destructive proposals in favour of a more realistic approach that will help tobacco farmers adapt if and when the demand for tobacco evolves”.

    The petition is available online at http://protectfarmers.tobaccoleaf.org/join.aspx

  • European growers up in arms over EU tobacco directive revision leaks

    UNITAB, which represents nearly 85,000 tobacco growers acrossEurope, is questioning the EU’s commitment to preserving jobs following leaks about the European Commission’s proposals for the revision of its tobacco products directive.

    Francois Vedel, UNITAB’s delegate secretary says that the introduction of plain packaging would lead to a price war because manufacturers would be prevented from distinguishing their brands from those of their competitors by any other means.

    And this war would be waged to the detriment of the raw-material suppliers, the tobacco growers, who, following the removal of direct subsidies, were already facing an uncertain future.

    “Is this how the European Union wants to preserve employment within the context of an unprecedented economic and social crisis and loss of confidence in European institutions?” he asked.

    The Commission’s official position, repeated in answer to a number of written question raised this year in the European parliament, is that it has not made any decisions on plain packaging.

    The Commission’s proposed revisions of the tobacco products directive are due to be presented before the end of the year.

    But UNITAB said in a press note issued on Wednesday that it seemed likely that the Directorate General for Health and Consumers had planned out and out war on the tobacco industry when revising the directive.
    The revisions would mount an attack on all ingredients that heightened the appeal of tobacco products, of which tobacco was one, and would promote plain packaging.
    UNITAB fervently opposed these moves because they would mean the end of the livelihoods of 85,000 European tobacco growers and the 400,000 jobs that they helped to create.

    One of the arguments against plain packaging is that it would make it easier for counterfeiters to fake packs and therefore that it would encourage the illicit trade.
    ‘Favouring contraband and counterfeit products from third countries using cheap tobacco of dubious quality that does not respect the health and environmental norms in force within the EU; these measures would prove to be ineffective or even harmful for Public Health,’ UNITAB said in its press note.

    ‘Furthermore, they constitute unacceptable discrimination against European production.’

  • India shifting from unlit to lit products

    The bans on various oral tobacco-containing products, such as gutkha, which have now spread to at least 11 Indian states, are likely to be ‘positive’ for cigarette companies, according to a story in The Times of India quoting tobacco analysts.

    The bans have been brought in under the Food Safety Standards Authority of India, which bans all ‘food products’ with tobacco or nicotine.

    There are no state bans on loose tobacco or smoking tobacco products.

    “We see this as a positive for cigarette companies considering the hike in excise and VAT rates in recent central and state budgets on bidi and gutkha,” analysts at the brokerage firm, Anand Rathi, were quoted as saying.

    Cigarettes account for about 15 per cent of tobacco consumption inIndia, while bidis account for 35 per cent and smokeless tobacco for the rest.

    “We expect low-end [cigarette] brands to benefit,” the analysts said. “Also, we estimate the new cigarette of 64-mm to command higher volumes, finding favour with former gutkha consumers.”

  • Canadian province seeking undisclosed sum from tobacco manufacturers

    Prince Edward Island’s courts could be the next battleground forCanada’s tobacco companies after the provincial government filed a lawsuit seeking compensation for health care costs associated with alleged tobacco-related disease, according to a Guardian story.

    The province’s statement of claim filed Monday named 13 tobacco companies as part of an alleged conspiracy to keep knowledge about the harmful and addictive properties of cigarettes from the province and the public.

    It also included the Canadian Tobacco Manufacturers’ Council as defendants in the lawsuit.

    The claim divided the companies into four related groups based on their ownership: Philip Morris Group, R. J Reynolds, British American Tobacco and Rothmans.

    In the 76-page statement of claim, the province seeks to recover health care costs relating to alleged tobacco related diseases for each year from 1953.

    The province is also seeking estimated costs for health care benefits that could reasonably be expected to result from tobacco related disease in the future.

    The government didn’t include the values in the statement of claim but said it would provide them prior to trial.

  • Manufacturer in retailer initiative to tackle underage sales

    Imperial Tobacco says that its business inAustraliais helping to tackle youth smoking with an initiative to remind retailers of the rules that are in place to avoid underage sales.

    In a note posted on its website, the company said that the nationwide campaign had involved internal briefings with sales teams, and retailer engagement designed to ensure that the issue of youth access to tobacco products was fully understood.

    “The campaign was very successful and served as a timely reminder of the law as well as reinforcing the retailer’s responsibility,” said Gary Dickson, regulatory affairs manager,Australia.

    “In addition a good deal of useful information was provided for the retail trade to assist them in dealing with consumers.

    “One territory manager told us the retailer engagement materials have further enhanced our reputation for being the leading FMCG company.”

  • China makes record sales of low-tar cigarettes during first half

    Sales of low-tar cigarettes inChinaduring the first half of this year reached a record high of 153.785 billion, up by 86.39 billion on sales during the first half of 2011.

    Sales of low-tar cigarettes, defined as having deliveries of 8 mg or less, are being officially promoted at present.

    Production of low tar cigarettes, also a record, was increased by 77.455 billion to 154.580 billion.

    At the same time, the production and sales of cigarettes delivering 6 mg of tar or less, which are included in the above figures, increased by about 50 per cent to 5.170 billion and 5.595 billion respectively.

  • Hungarian state to monopolize tobacco sales from July next year

    Hungary’s parliament on Tuesday passed a law that establishes a state monopoly for the retail sale of tobacco products from July 1, 2013, according to a realdeal.hu story. The bill, submitted by the ruling Fidesz party in December, will require shop owners to acquire a concession from the state to sell tobacco products.

    And it will limit the number of tobacco retail outlets to what is expected to be 7,000.

    Bids for the concessions will be called by November 15 and the results announced within two months.

    The state will be able to fine retailers that sell tobacco products without having a concession up to half a billion forints.

    The final vote on the bill, which saw 244 deputies in favour of the proposal, 36 against and 26 abstentions, took place after the European Commission had raised no objections to the legislation.

  • Karnataka growers told not to panic over e-auctioning postponement

    India’s former prime minister, H D Deve Gowda, yesterday appealed to tobacco growers in Karnataka not to yield to pressure from merchants and resort to distress sales of their leaf, according to a Deccan Herald story.

    Addressing reporters in the state capital, Bengaluru, Gowda said that following the Tobacco Board’s decision to postpone e-auctioning, growers were being forced to sell their produce to merchants from places such asGuntur, Andhra Pradesh, at a much lower prices than they would otherwise receive.

    He said he had appealed to the Union Commerce Minister, Anand Sharma, to start the auctioning process in Karnataka.
    “The minister has agreed to start auctioning by September 26,” said Gowda.

    “I appeal to the farmers not to panic and resort to distress sale.”

  • Australian health insurers foiled in attempt to charge smokers more

    Australia’s Health Minister, Tanya Plibersek, has ruled out allowing health funds to charge smokers more than they charge non-smokers, according to a report by Fiona Willan for ninemsn.

    ”The government requires all private health insurers to offer community-rated health insurance,” Plibersek said.

    ”This ensures that the premium paid by consumers for a private health insurance policy does not vary based on age or health status.

    “This prevents private health insurers from discriminating between people who require more services and are more vulnerable to health expenses.”

    The private health insurer, NIB, was leading health funds in a push to charge smokers more.

    “We should be able to offer a discount for good healthy behaviour like not smoking and exercise,” said NIB chief executive, Mark Fitzgibbon.

  • Deskbound? Try a virtual laboratory tour courtesy of Filtrona

    Filtrona Scientific Services (FSS) is inviting existing and perspective customers to take a virtual tour of its recently expanded, state-of-the-art testing laboratory.

    The room-by-room online tour provides viewers with a behind-the-scenes look at the FSS laboratory, which is inNewcastle,UK, and which recently increased its testing capabilities.

    The laboratory is said to offer customers a ‘complete service of analytical and commercial testing, expert guidance and product solutions’.

    The tour is at: www.filtronascientificservices.com/virtualtour.

    Part of FSS’ newly-expanded laboratory that may now be toured via the Internet.