India
In early April 2016 the Tobacco Institute of India (TII), a lobby group that represents 98% of India’s cigarette industry, threatened to halt production claiming “ambiguity” over the government’s policy on health warnings displayed on tobacco packs.
In a statement they said that they had “unanimously decided to shut all their cigarette factories with effect from April 1 owing to ambiguity on the policy related to revision of Graphic Health Warnings on tobacco product packs.”
According to the TTI, the cease in production would mean a daily loss of Rs.350 crore for the tobacco industry and that “the extreme 85% warnings will promote illegal cigarette trade and adversely affect the livelihood of 45.7 million people dependent on tobacco which included farmers, labour and workers.”
April 1st was to be the day when cigarette manufactures were to ensure that 85% of the surface area of their cigarette packages be covered with warnings on the harm posed by consuming tobacco.
Following the shutdown, the Federation of All India Farmer Associations (FAIFA), representing the interests of tobacco growers in the country, expressed concern that continued closure of tobacco products manufacturing had created a panic amongst the community with Rs 1200 crore of unsold tobacco crop lying in Telangana and Andhra Pradesh alone. The association said another Rs 700 crore of bank loans outstanding with farmers are under risk. FAIFA said the FCV tobacco crop had piled up on back of fluctuating buying by domestic manufacturers and poor demand from global buyers and appealed to the industry to resume production, as well as requested the government to withdraw larger graphic health warnings on tobacco products.
India’s tobacco industry had got unusual support from a health ministry-appointed parliamentary panel that said the implementation of large size health warnings would be an extreme measure.
On April 15, ITC Ltd., India’s largest cigarette manufacturing company, said it would resume the manufacturing of cigarettes in its factories following a High Court order passed in favor of the company.