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Nipped in butt: Tobacco sales up despite ban  

Jump to full article: The Economic Times (India), 2009-11-15

Intro:

Ramadoss, the former Union minister of health and family welfare, tried to help Indians kick the butt through stringent controls on tobacco sales and advertisements. But strangely, after the ban on public smoking in October last year and the much-touted pictorial warnings on cigarette packs from May 31 this year, Indians seem to be smoking more!

Most of the major tobacco companies posted continuous sales growth during the past two quarters, April-June and July-September 2009. The largest domestic tobacco company, ITC, with cigarette brands such as India Kings, Classic, Gold Flake, Navy Cut, Bristol, Scissors, Capstan and Flake, registered sales growth of over 20% in the tobacco business in both the quarters ending June and September this year.

During the first quarter of FY10, in terms of sales, the tobacco business grew by 23%, whereas, during the second quarter of FY10, the cigarette business went up by 21% to Rs 2199.69 cr compared to a year ago.

One of the major reasons for the continued growth in cigarette consumption is that the pictorial warnings on tobacco products are ineffective, according to a recent study by Mumbai-based health research organisation Healis.

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