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Tobacco companies fume over 'indiscriminate' smoking ban

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BS Reporters Chennai/Kolkata/Mumbai/New Delhi

It was just another day for smokers as well as vendors as the new nationwide law that kicked in prohibiting smoking in public places.

Though most state governments said they were serious about implementing the new rule, people in cities like Chennai, Mumbai and New Delhi continued to smoke without fear and remorse in public places. Even the threat of a fine of Rs 200 failed to deter them.

Confusion abounded at several places about what constituted a public place. The Chennai police was quick to issue a stern warning to smokers, though, it had little affect on them. Some cigarette sellers said the sales had slumped to 15 per cent.

 

In some other cities, the authorities said they did not have the wherewithal to implement the ban. In Mumbai, for instance, the Bombay Municipal Corporation said implementation of the smoking ban would take time due to the lack of manpower and infrastructure.

Still, states made their first move by making hotels and government offices clear non-smoking areas. Five-star hotels across major cities, on their part, have made their entire common areas non-smoking zones and have also created special spots for smokers. They will, however, continue to provide smoking rooms for their guests, which is not considered a public area, hoteliers said.

Hotels like ITC Park Sheraton in Chennai, for example, at least a day before the ban came into force, removed all ashtrays from the hotel’s corridors and put up signage warning people not to smoke at non-designated spots. Many restaurants in Mumbai have already put up such signage. Privately, several pub owners said their businesses would be affected due to this “indiscriminate” smoking ban. They felt the government rushed into such a measure without giving them enough time to arrange space for smokers.

The impact of this ban on footfalls in pubs and bars would be known only tomorrow, since it was a “dry day” across the country today to mark the birth anniversary of Mahatma Gandhi.

Companies are expected to fall in line with Union Health Minister Anbumani Ramadoss’ dream project of removing smoking in public places. Large multinational corporations like Cognizant Technology Solutions in Chennai that had designated spots within its campuses earlier for smokers have done away with them.

NNR Sharavanan, general manager (administration), Syntel, a US-based software firm which employs over 2,500 people in Chennai, said the company is taking stringent measures to implement the ban. If a majority of the employees appeal for a separate smoking area, the company may consider providing one which will not be in violation of the government’s order, he added.

Bangalore-based Wipro Technologies also asked its employees to abstain from smoking within office space including car parking areas, balconies and even outdoor walkways. In a communication to its employees, the company said that “anyone who does not comply with the rules could face a penalty or legal action”.

Cigarette makers said it was too early to assess the impact of the ban on sales and a clear picture would emerge in a few days. Some vendors told Business Standard that they did not expect sales to drop in the days to come.

Rajesh Kumar, a tobacco products seller in New Delhi, was confident his customers would not desert him. “Smokers will smoke,” he said, adding he hoped to continue selling about 50 packets a day. In Delhi, the ban on smoking in public places is already there. The administration has fined 1,131 people for smoking in the capital till July 31 this year.

Official figures say that with its 240 million tobacco users, India has annual cigarette sales of about 102 billion sticks. But that is still a small market compared to China’s, where, says WHO, one of every three cigarettes in the world is smoked.

With cigarette sales growing at an average annual rate of 5-6 per cent, ICICI Securities has estimated that India is one of the few world markets to show growth in cigarette consumption. So, much is at stake for India’s top cigarette maker, ITC Ltd, which has challenged the ban in court. The case is scheduled to come up in the Supreme Court on November 18, an ITC spokesperson said.

ITC, which also has interests in apparel, software and paperboard, has been pushing into packaged foods and personal care products as it seeks to cut its reliance on cigarettes. Still, cigarettes make up a lion’s share of its profits, with the new initiatives expected to contribute only gradually.

With the ban, India follows countries such as Britain, France, South Africa and Thailand. Worldwide, more than five million people die of tobacco-related illnesses currently. This, the WHO says, will rise to more than eight million in the next 20 years, most of them coming from low- and middle-income countries such as India.

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First Published: Oct 03 2008 | 12:00 AM IST

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