The Union Health Ministry said there is "no ambiguity" in the policy in this regard and it has been made "crystal clear" that products packaged after April 1 will have to carry larger warnings.
"We want to clarify that there is no ambiguity. This is a bogey raised by the tobacco industry. The case is crystal clear. We had issued the notification in September last year. If they had found an ambiguity, why did they send their letter in March, 2016," a senior ministry official said.
The comments come a day after major cigarette manufacturers, including ITC, Godfrey Phillips and VST, decided to shut all their factories and stop production citing an "ambiguity" in the policy mandating larger pictorial warnings covering 85 per cent of the packaging space.
The ministry's September 24, 2015, notification for the implementation of the Cigarettes and Other Tobacco Products (Packaging and Labelling) Amendment Rules, 2014, which prescribes larger pictorial warnings on tobacco products came into force yesterday.
More From This Section
(REOPENS DEL20)
The companies, which are members of the Tobacco Institute of India (TII), together account for more than 98 per cent of the country's domestic sales of duty-paid cigarettes.
They claimed that the estimated production revenue loss would be to the tune of over Rs 350 crore per day for tobacco product manufacturers.
"Owing to the ambiguity on the policy related to the revision of graphic health warnings on tobacco product packs, the members are unable to continue manufacturing cigarettes from April 1, 2016," TII said in a statement.
Dismissing the talk of revenue loss by the tobacco manufacturers, health ministry sources said "there are actually no losses" if one undertook an overall social cost analysis keeping in mind the money which the government spends on anti-tobacco campaigns and the health benefits which people get. "There is only benefit," they said.
TII Director Syed Mahmood Ahmad said the Indian tobacco industry had written to the health ministry on March 15 seeking clarification on the matter.
The Parliamentary Committee on Subordinate Legislation had recommended that the message occupy 50 per cent of the packaging space.