Tag: India

  • New Tobacco Health Warnings in India

    New Tobacco Health Warnings in India

    Photo: Tobacco Reporter archive

    Tobacco manufacturers selling in India will have to print a new health warning on their products starting Dec. 1, reports Mint.

    The Union Health Ministry has specified two sets of warning messages and images to be used on both sides of the pack. The first, “Tobacco causes painful death,” must be printed with an image on one side of a pack, and the message “Tobacco users die young” must be displayed with an image on the other side of a pack.

    The packs must also display a toll-free helpline for smokers wishing to quit.

    Health activists welcomed the new warnings.

    “It’s a proven fact that the lives of tobacco users are shortened by up to 10 years as compared to nontobacco users,” said S.K. Arora, medical superintendent of the Sanjay Gandhi Memorial Hospital and renowned tobacco control expert. “The warnings play a significant role in helping tobacco users quit the habit.”

    In the second round of the Global Adult Tobacco Survey, 61.9 percent of cigarette smokers, 53.8 percent of bidi smokers and 46.2 percent of smokeless tobacco users were considering quitting due to the warning label on packets. The number is significantly higher compared to the 2009–2010 figures.

    According to government data, tobacco use causes more than 1.3 million deaths every year

  • ITC Reports Strong Fiscal Year

    ITC Reports Strong Fiscal Year

    Photo: Wirestock

    ITC reported gross revenue of INR591.01 billion ($7.62 billion) for the fiscal year that ended March 31, 2022, up 22.7 percent over the previous fiscal year. The company’s earnings before interest, taxes, depreciation and amortization were up 22 percent, to INR189.34 billion, while profit before tax was INR198.3 billion, 15.5 percent more than in the previous year. Profit after tax was INR150.58 billion, compared with INR130.32 billion a year earlier.

    According to ITC, the operating environment during the year was marked by heightened uncertainty and volatility due to the Covid-19 pandemic, along with unprecedented inflationary headwinds. Geopolitical tensions towards the end of the year exacerbated the situation.

    “In spite of significant disruptions during the year, the company’s consumer-centricity, agility in seizing market opportunities, focus on execution excellence harnessing learnings from previous waves and proactive strategic interventions enabled it to post robust growth in revenues and profits, surpassing pre-pandemic levels,” ITC wrote in statement.

    After a challenging fiscal year 2020-2021, and despite repeated disruptions this year, ITC’s cigarette business progressively recovered on the back of improved mobility and easing of restrictions, surpassing pre-pandemic levels in the latter half of the year. According to ITC, the business effectively leveraged institutional strengths, digital technologies and learnings from previous waves to respond with agility across all nodes of operations. This included, reconfiguring and realigning supply chain operations to service market requirements through dynamic planning, strengthening direct reach in target markets across all traditional trade channels and augmenting the network to service rural and semi-urban markets efficiently.

    ITC says the cigarette business continues to counter illicit trade and reinforce market standing by fortifying the product portfolio through innovation, democratizing premiumization across segments and enhancing product availability backed by superior on-ground execution.

    The company introduced several new brand variants to cater to continuously evolving consumer preferences. New launches during the fiscal year included Classic Connect, Gold Flake Neo SMART Filter, Wills Protech, Capstan Excel, American Club Smash, Gold Flake Kings Mixpod, Gold Flake Indie Mint, Wave Boss and Flake Nova.

    Meanwhile, ITC says it continues to modernize its manufacturing facilities by introducing contemporary technologies towards securing higher levels of productivity, product excellence and driving innovation. “New benchmarks were set in areas of quality, sustainability, supply chain responsiveness and productivity,” the company wrote in its financial release. “Cutting-edge technologies such as Industry 4.0 and Data Sciences were leveraged to build a smart manufacturing environment of connected systems.”

  • Indian Growers Hopeful for Better Prices

    Indian Growers Hopeful for Better Prices

    Photo: Taco Tuinstra

    As tobacco auctions began in Prakasam and Nellore, Indian tobacco farmers are hoping to see better than average prices for their leaf during the 2021–2022 season, reports The Hindu.

    Farmers had a hard time marketing leaf the past two years due to lower demand caused by the economic crisis and uncertainties due to Covid-19.

    “We hope to make a kill[ing] this year, thanks to the lifting of pandemic restrictions. There are no logistic problems that were witnessed in the last two years when Covid cases were at peak,” said a group of farmers waiting for buyers at the Ongole I auction platform. Exporters have not entered the market yet due to the lack of confirmed orders from their counterparts overseas.

    “The exporters are expected to enter the market during next week when the bales put for auction will be stepped up from the present 200 to 300 in each auction platform to 500 to 600,” SLS Regional Manager D. Venugopal assured the farmers, who were worried over nonparticipation in the auctions by all the registered traders.

  • Study: India’s E-cigarette Ban is Working

    Study: India’s E-cigarette Ban is Working

    A recent survey shows that 94 percent of Indian vapers have given up e-cigarettes and other electronic nicotine-delivery systems (ENDS) following their ban in 2019, according to the BangaloreMirror.

    The survey, designed by the Campaign for Tobacco-Free Kids and conducted in collaboration with the National Law School of India University, Bengaluru, was disseminated online and targeted those aged 18 to 34. Most respondents were from Karnataka.

    The survey also showed that over 56 percent of respondents believed there was a health risk in using ENDS products while 24 percent were unaware of any risks.

  • ITC Quarterly Revenue up 30 Percent

    ITC Quarterly Revenue up 30 Percent

    Photo: Wirestock

    ITC reported an operating revenue of INR183.66 billion ($2.46 billion) in the October-December period, up 30 percent over the corresponding quarter in 2020, according to Business Today.

    Growth was boosted by the company’s agricultural and cigarette businesses. ITC’s cigarettes segment posted remarkable growth following a long period of decline. At INR69.59 billion, revenue from cigarettes was 14.3 percent higher year-on-year and grew 12 percent sequentially. According to Edelweiss securities, it was way above its estimated growth rate of 8 percent.

    ITC’s agri-business revenue jumped 90 percent in the third quarter of fiscal 2022 from the year-ago period, while it grew by 82.7 percent sequentially. Strong exports offset weak domestic demand for the company’s agricultural products, which include leaf tobacco, during the quarter.

    “Robust recovery continued across markets aided by increase in mobility and agile supply chain and market servicing,” ITC wrote in a statement. Market standing reinforced leveraging portfolio vitality, product accessibility and execution excellence. Business continues to invest in augmenting assortment to strengthen its competitive position and counter illicit trade.”

  • Uniquely Deadly

    Uniquely Deadly

    A street vendor offers smokeless tobacco in Kolkata. (Photo: Taco Tuinstra)

    India’s crackdown on its dangerous smokeless tobaccos in the wake of Covid-19 should be complemented by a more coherent harm reduction strategy.

    By Stefanie Rossel

    The Covid-19 pandemic presented an opportunity for India to intensify its fight against the consumption of local smokeless tobaccos. On April 15, 2020, the government banned the sale of tobacco products, including chewing tobacco, the most widely used form of tobacco in India, as a measure to slow the spread of the coronavirus. Chewing smokeless tobacco products, which in India typically contain areca (betel) nut, increase the production of saliva and create a strong urge to spit—an undesirable habit during a pandemic.

    As in Sweden, smokeless tobacco is significantly more popular than combustible tobacco in India. According to a 2020 analysis, nearly 199.4 million Indian adults consume smokeless tobacco regularly, which is more than twice the number of smokers. This makes it the country with the largest number of smokeless tobacco users. However, unlike Sweden’s snus, which ranks at the bottom of the continuum of risk, Indian smokeless tobaccos are quite risky. Public health experts describe them as “uniquely deadly.”

    There is a wide variety of chewing tobacco available in India. The most commonly used products are khaini, a mixture of tobacco and lime used by 11.2 percent of adults, and gutkha, which consists of tobacco, slaked lime, paraffin wax, catechu (an extract of acacia trees) and crushed areca (betel) nut, and is consumed by 6.8 percent adults. Other smokeless tobaccos use mixtures of betel quid and paan masala.

    What all these types of tobacco have in common is that they are highly addictive and full of carcinogens. In addition to the typical ingredients, these products can be laced with thousands of chemicals. The products are said to have both stimulant and relaxing effects; some are sold as mouth fresheners. Available for a few rupees, they are also affordable for poor people.

    The consumption of smokeless tobacco was above the national average of 21.4 percent in 13 Indian states, with prevalence ranging from 23.5 percent in Bihar to 48.5 percent in the Tripura, according to the 2016–2017 Global Adult Tobacco Survey (GATS).

    Smokeless tobacco consumption is responsible for India’s high rate of oral cancer. With 141.2 million male users compared to 58.2 million female users, consumption of smokeless tobacco is predominantly a male habit. However, three-fifths of the deaths attributable to smokeless tobacco use occur among women. In contrast to smoking, which is generally considered a taboo for women, smokeless tobacco consumption is more socially acceptable. As smokeless tobacco is deeply entrenched in the region’s culture, it tends to pass from one generation to the next. Children as young as 10 years old have been found to regularly use smokeless tobacco.

    Samrat Chowdhery, who leads consumer advocacy for tobacco harm reduction in India and is the past president of the International Network of Nicotine Consumer Organizations, estimates that smokeless tobacco is responsible for 350,000 premature deaths annually in India. “Though this mortality rate is lower than from combustible tobacco, it is still quite high,” he says. “The main reason for this is that Indian/southeastern smokeless tobacco products are handmade or made in poor hygienic conditions, which allows for impurities to creep in. There is no attempt to control or reduce tobacco-specific nitrosamines; the use of slaked lime adds another cancerous component; there is no licensing, standards or quality control; and finally toxic additives, such as nicotine sulphate and flavoring agents, are added to tobacco products.”

    Samrat Chowhery

    Ineffective Ban

    India has been targeting smokeless tobacco as it aims to reduce the number of tobacco users by 30 percent by 2025. In 2012, states started banning the manufacture, sale and distribution—but not consumption—of pre-packaged gutkha under laws governing food, which may not contain tobacco. Some states extended this ban to other tobacco-containing oral products, such as paan masala.

    Enforcement, however, has been patchy. A 2014 World Health Organization study found that 15 percent of respondents continued to purchase prepackaged gutkha. According to a 2018 YouTube feature by The Print, many street vendors in Delhi were unaware of the ban, and police were not taking action.

    A large-scale household survey in Delhi in 2016 revealed that a mere 18.84 percent of gutkha users attempted to quit after the ban, although 97.5 percent of respondents believed tobacco to be harmful or very harmful. Only 2.4 percent successfully quit, the report found. Gutkha, a white-to-brownish granular flavored product, turns saliva bright red, and is usually spat onto a wall or on the ground, causing red stains that are hard to remove. It typically comes in colorful sachets. Following the ban, manufacturers started selling gutkha and tobacco in separate packs. In Delhi, 84.1 percent of pre-ban gutkha users switched to these twin sachets, the household survey found. Many switched from single-dose to multi-dose sachets or to khaini.

    In March 2015, legislators prohibited all smokeless tobacco products including twin packs. Violators risk prison sentences or fines of up to INR25,000 ($336.39).

    “The reporting of the so-called bans is usually skewed by the need to showcase them to their peers from the global tobacco control community,” says R. N. Sharan, retired professor of biochemistry, molecular biology and genetics at North-Eastern Hill University in Shillong, India. “Thus, at global and national forums on tobacco control, India’s attempts to ban risky smokeless tobacco products are often given a high profile and kudos showered on the involved public health advocates as well as policymakers. However, the proof is in the pudding. The bans have been cleverly, and sadly, circumvented by manufacturers, retailers and common ones. On the ground, prohibition seems to have, once again, failed.”

    R. N. Sharan

    Expanded Authorities

    With the advent of the pandemic in India, the government cracked down on tobacco. After the first reports that smoking might increase the risk of severe Covid-19, many Indians attempted to switch from cigarettes to smokeless tobacco. According to Statista, about 77 percent of smokers aged between 25 years old and 39 years old tried to transition to smokeless tobacco.

    In addition to the government’s national directive on Covid-19 management, states and union territories received new powers under the Epidemic Disease Act, the Disaster Management Act and the Indian Penal Code to prohibit use of smokeless tobacco and spitting in public places.

    By May 2020, up to 28 states and union territories had implemented various restrictions linked to smokeless tobacco, according to the Observer Research Foundation. The study’s authors concluded that the jurisdictions were right to act. Despite the country being a signatory to the WHO Framework Convention on Tobacco Control (FCTC), many of the treaty’s recommended policies, such as graphic health warnings on packs and advertising bans, tend to be circumvented by smokeless tobacco products.

    The bans, all of which are outside FCTC policy, strengthened during the pandemic and appeared to have been more uniformly rolled out across the country, giving additional powers to states, the authors stated, but the amendment of some policies within a short span of time was likely to have caused confusion. At the time of writing, several states had extended the bans on smokeless tobacco manufacture, sale and distribution for another year.

    Sharan says there are a number of reasons why the ban on chewing tobacco hasn’t shown the desired results so far. “India’s capabilities for technical analysis of smokeless products are not yet fully up and running, despite significant investment over the years,” he says. “Enforcement on the ground is also a big issue, further complicated by (a) the governance structure where primarily the central government legislates while the responsibility of their implementations remains essentially vested in the state or provincial governments, and (b) a complex web of vested interests.”

    In fact, says Sharan, the Covid-19 pandemic may have made the situation worse. The regulatory apparatus in India has been and continues to be under severe stress from the pandemic, and they can only focus on so many things at one time. This is in sharp contrast to the Food and Drug Administration in the U.S. and the Trading Standards Authority in the U.K., which are well funded, adequately resourced to police the regulated products in the market and empowered to identify prohibited products or pull out noncompliant products from the market and suitably punish the erring vendors/manufacturers if required.

    “It is to be noted that the FDA’s Center for Tobacco Products is funded from fees paid by the industry they regulate, thus ensuring a fair and level marketplace. I am not aware of the existence of any such mechanism in India. In this context, India could be a winner if it chose to learn some lessons from the rest of the world.”

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    Desperately Needed: Harm Reduction

    India closely adheres to the WHO’s abolitionist stance, as evidenced by the country’s 2019 ban on vape products. “My understanding is there is a general denial of harm reduction approaches among governmental stakeholders,” Chowdhery says. “I am not sure, though, how the bans are evaluated or if there is a mechanism for that, though I do keep hearing about smuggling of these goods going up through everyday reports of seizures.

    “My view is that such bans, if not accompanied by meaningful cessation support in the form of in-person counselling centers and affordable, subsidized nicotine-replacement products or substitution products, such as nicotine pouches and snus, for those who can’t or don’t want to quit, along with strong enforcement, will lead to creation of black markets, which end up increasing population-level harm through proliferation of unregulated, substandard products.”

    Sudhanshu Patwardhan, U.K.-based medical doctor and tobacco cessation expert, looked exactly at these issues in a paper, “New Nicotine Pouch Category: A Tobacco Harm Reduction Tool?” which he published with Swedish Scientist Karl Fagerstrom in October 2021.

    “India’s latest GATS [Global Adult Tobacco Survey] data shows that nearly 200 million people continue to use risky forms of oral tobacco,” he says. “With no meaningful cessation support available, nor any affordable and appealing safer nicotine alternatives, consumers are struggling to give up their risky tobacco habit. Frankly, it is naive to expect governments to embrace tobacco harm reduction at face value.

    “The ban on e-cigarettes was partly fueled by irresponsible behavior from multinational companies and international experts’ lack of understanding of the Indian policymaking milieu and worsened by nicotine illiteracy among Indian policymakers and their influencers, such as healthcare professionals. A lot of work needs to be done in India and globally to enable and empower healthcare professionals by disentangling in their minds nicotine’s addictive properties from smoked as well as smokeless tobacco products’ carcinogenic and other harmful properties.

    “Nicotine-replacement therapy is on the WHO’s model essential medicines list and also on India’s essential medicines list. As I and globally renowned nicotine dependence expert Dr. Fagerstrom argue in our paper in the Nicotine and Tobacco Research Journal, ‘there is a great challenge and opportunity in India to bring affordable nicotine pouches that are responsibly manufactured and marketed only to adult tobacco users. It would be important to ensure that adult users’ access and affordability are not compromised by the regulatory regime and the behaviors of profit-maximizing manufacturers.’”

  • India Slashes Penalty for Overproduction

    India Slashes Penalty for Overproduction

    Photo: Tobacco Reporter archive

    India’s Ministry of Commerce and Industry has cut the penalty on “excess” tobacco produced during the 2021-2022 cropping season by 50 percent to help growers compete on the world market, reports The Hindu.  

    To prevent overproduction, Indian regulators set a crop size target prior to each production season. Growers who exceed the authorized volume must pay a penalty.

    Following the penalty reduction, authorized growers must pay INR1 ($0.01) per kg and 5 percent of the value of their excess production during the 2021-22 cropping season. However, unregistered growers have to pay the old rates.

    Tobacco growers welcomed the decision. “We can confidently raise the crop without fearing the penalty to achieve the economies of scale,” said B. Ramaanjaneyulu.

    The Tobacco Board authorized production on 27,818 hectares in the Southern Light Soils region and 22,014 hectares in the Southern Black Soils region of Andhra Pradesh.

  • Farmers Rally Against Contracting Plan

    Farmers Rally Against Contracting Plan

    Photo: Tobacco Reporter archive

    A plan to introduce tobacco contract farming has run into fierce opposition among leaf growers in India, reports The Times of India. During a massive gathering in Guntur on the occasion World Tobacco Growers’ Day, farmers demanded that the central government abandon its proposals, saying that contracting would put growers at risk of exploitation.

    “It’s going to have a disastrous effect on the livelihood of millions of growers,” predicted Gadde Seshagiri Rao, former vice president of the Tobacco Board.

    Virginia tobacco farmers association president Karatam Venkata said the existing auction system works well because it provides growers with assured payment though the Tobacco Board while contract farming results in delayed payments. In contract farming, he added, farmers’ livelihoods would be at the mercy of traders.

    Growers also praised the fairness and transparency of the auction system, which they said provided greater market stability than contracting. The tobacco farmers were particularly incensed that the government had made its proposal without consulting them.

    Contract farming has been gaining momentum globally at the expense of auction sales as leaf traders faced with ever-stricter compliance requirements seek greater control over the production process.

  • Tobacco Board Ups Andhra Crop Size

    Tobacco Board Ups Andhra Crop Size

    Photo: Tobacco Reporter archive

    The Tobacco Board of India has fixed the 2021–2022 crop size for Andhra Pradesh at 130 million kg, reports The Times of India, nearly 15 million kg more than last year’s crop size.

    The decision to authorize a larger crop was driven by the reasonably decent prices offered by traders for the most recent tobacco crop.

    In April, the board increased the 2021–2022 crop size for Karnataka to 97 million kg from last year’s 88 million kg.

    The board trimmed the crop sizes for Andhra Pradesh and Karnataka in the wake of Covid-19. But with traders buying the entire stock, the board decided to revive production.

    The board also elected K. Vasudeva Rao as vice chair for a one-year term during the crop size meeting.

  • ITC’s Cigarette Business Recovers from Low Base

    ITC’s Cigarette Business Recovers from Low Base

    Photo: Seemanta Dutta | Dreamstime.com

    ITC reported net revenue of INR12,217 crore in the first quarter of its fiscal year 2022, up 37 percent over the corresponding period of the previous year, reports Money Control. Net profit rose 28.6 percent to INR3,013.5 crore.

    Revenue from ITC’s mainstay cigarette segment jumped 33 percent during the first quarter in comparison to INR3,854 crore a year ago.

    The growth in topline was led by the company’s cigarette, FMCG and paper segments. The jump came on a low base as the first quarter of fiscal 2021 suffered from a significant decline in sales due to the onset of Covid-19 and a nationwide lockdown.

    By contrast, the second wave of the pandemic had limited impact on the segments.

    After severe disruptions in May, there has been week-on-week improvement in market conditions from mid-June, according to ITC, with most markets returning to normalcy and witnessing faster recovery compared to the first wave.

    “The pace of volume recovery is better, compared to the previous wave of Covid-19, aided by improved mobility, distribution expansion and new launches,” said Mehul Desai, analyst at Anand Rathi Shares and Stock Brokers. “Also, restrictions were not as severe as previous lockdowns.”

    ITC introduced several new cigarette variants, including Gold Flake Excel, Wills Navy Cut Filter and Berkeley Hero, during the quarter.

    The FMCG category, which includes several essential products, has helped the company tide over a difficult year. Its revenue from the segment stood at INR3,726 crore during the quarter as compared to INR3,375 crore in the year-ago period.

    Despite continued growth in FMCG, ITC continues to draw the highest share of its revenue from cigarettes, a matter of concern for analysts.