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Tag: Bangladesh

  • Bangladesh Mulls Ban on E-Cigs and Pouches

    Bangladesh Mulls Ban on E-Cigs and Pouches

    Photo: sezerozger

    Bangladesh’ Ministry of Health and Family Welfare wants to amend the country’s tobacco act to ban e-cigarettes and oral nicotine pouches, reports The Business Standard. The proposal also includes new restrictions on combustible tobacco products.

    Health activists have been calling for prohibition of e-cigarettes, which are not mentioned in the current legislation. The proposal would prohibit not only the consumption of vapor products, but also the production, import, export, storage, sale and transportation of e-cigarettes or their parts.

    People caught vaping would face maximum fine of BDT5,000 ($53.80) under the plan, while producers and traders would risk imprisonment for a maximum of six months or a fine not exceeding BDT200,000 or both for the first time. The punishment would double each time the offence is repeated.

    E-cigarettes started arriving informally in Bangladesh a few years ago and quickly became popular. As demand increased, British American Tobacco started producing and selling e-cigarettes in the market. Japan Tobacco is also reportedly preparing to market e-cigarettes in Bangladesh.

    The health ministry’s proposal would also tighten restrictions on traditional tobacco products. Among other provisions, it includes a ban on flavors and an increase in the size of graphic health warnings to 90 percent of the packaging’s surface from the 50 percent required under current legislation. The draft also foresees new retail licensing requirements and limitation on where tobacco can be sold.

    The health ministry has recently sent copies of the draft to stakeholders. The Directorate General of Health Services is accepting opinions on the draft until July 14.

  • Bidi Workers Demand Protection Against Cigarettes

    Bidi Workers Demand Protection Against Cigarettes

    Photo: WESTOCK

    Bidi workers in Bangladesh formed a human chain on June 21 outside of the Pabna Deputy Commissioner’s office, demanding protection against competition from “foreign” cigarettes, reports The New Nation.

    According to the leaders of the group, the biggest competitors to bidis are low-quality cigarettes, which are mostly owned by foreign companies and have not been set to increase in price much in the 2022/2023 budget.

    “Bidi industry is a domestic worker-friendly industry,” the group leaders said. “Bidi is a 100 percent indigenous technology-based industry. On the other hand, everything in cigarettes is imported from abroad and depends on technology. Foreign multinational companies are smuggling thousands of crores of rupees by burning the lungs of the people of this country.

    “If all kinds of conspiracies against the domestic bidi industry, including the withdrawal of discriminatory advance income tax, are not stopped, we will be forced to wage a fierce agitation.”

    After the protest, the leaders of the group presented a memorandum to the prime minister through the deputy commissioner of Pabna.

    The group demanded an increase in the price of low-quality cigarettes, withdrawal of a 10 percent tax on bidis, and legislation to protect bidi workers.

  • Bangladesh: MPs Want Tobacco-Free Country

    Bangladesh: MPs Want Tobacco-Free Country

    No Smoking Please sign on stone wall
    Photo: LadyInBlack | Adobe Stock

    About 40 Members of Parliament (MPs) adopted a declaration to achieve tobacco-free status in Bangladesh by 2040, according to The Dhaka Tribune.

    MP Habibe Millat presented the declaration at a media briefing on May 20, 2022, in Cox’s Bazar. The three-day Conference on Achieving a Tobacco-Free Bangladesh by 2040 was organized by the Bangladesh Parliamentary Forum for Health and Well-Being (BPFHW) at the Sea Pearl Resort. The conference was organized in association with the Shastho Shurokkha Foundation and Campaign for Tobacco-Free Kids (CTFK) Bangladesh. 

    Signed by Habibe, chairman of the BPFHW, the 16-point declaration acknowledged the progress on the commitment so far, recognized the urgent need for action and recommended some key actions to realize the vision.

    Officials noted progress through the Smoking and Using of Tobacco Products (Control) Act 2005, as amended in 2013, and the Smoking and Tobacco Products Usage (Control) Rules 2006 and 2015, which led to a reduction in overall adult smoking rates from 43.3 percent in 2009 to 35.3 percent in 2017.

  • BAT invests in Bangladesh

    BAT invests in Bangladesh

    Photo: Piotr Pawinski

    British American Tobacco will invest BDT5.74 billion ($66.55 million) in its Savar, Bangladesh, operations to cater to export opportunities and create contingency capacity, reports The Daily Star.

    The announcement follows a BDT5.14 billion investment in 2021 to increase the facility’s production capacity.

    “With an eye on future exports, the board has approved an investment of about Tk 574 crore to further expand the Savar factory’s production capacity,” said Sheikh Shabab Ahmed, head of external affairs at BATBC.

    “We believe with the improved capacity we will be equipped for any future demand,” he added.

    In 2021, the company’s net turnover rose 24 percent to BDT74.87 billion, up from BDT60.29 billion the previous year, according to its annual report. In the same period, BAT Bangladesh logged profits of BDT14.96 billion, up 37.5 percent over that posted in 2020.

    BATBC has cigarette factories in Dhaka and Savar, a green leaf threshing plant in Kushtia, a green leaf re-drying plant in Manikganj, and a number of leaf and sales offices throughout the country.

  • Bangladesh Investigates BAT’s Dominance

    Bangladesh Investigates BAT’s Dominance

    Photo: ronstik

    Japan Tobacco International has accused BAT Bangladesh of anti-competitive practices, reports The Daily Star. The Bangladesh Competition Commission (BCC) is investigating the complaint.

    United Dhaka Tobacco Company (UDTCL) alleges in the complaint that BATB abuses its dominant position. JTI filed the case in March 2021, three years after entering Bangladesh’s tobacco market by acquiring UDTCL for $1.47 billion in 2018 from Akij Group.

    When JTI entered Bangladesh, UDTCL had a 19.8 percent share in the cigarette market, which has now dropped to 12.6 percent. JTI alleges this is due to BATB’s anti-competitive practices.

    BATB is the leading cigarette seller in the country followed by JTI and Abul Khair Tobacco.

    BATB had a more than 95 percent share in the premium and “high” segment of the market, according to a 2019 study. Its share in medium and low segments was 65 percent and 58 percent, respectively.

    JTI alleges that BATB operates a program with its retailers to prevent competition in the market and stop rivals from gaining more market access. Under the alleged program, if a BATB partner retailer stocks or sells United Dhaka Tobacco products, BATB or its representatives penalize or deduct loyalty points from the retailers or threaten to stop supplying products to the retailers.

    “BATB runs the program directly and/or indirectly through its representative and/or distributor,” said JTI, adding that it earlier requested BATB to put an end to all programs and acts that restrict competition.

    BATB denied the allegations, according to the JTI complaint.

    Md Mofizul Islam, the chairperson of the BCC, says the commission is investigating the case. “We will try to give a verdict as soon as possible after holding a hearing.”