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Tag: India

  • GPS-Based App to Launch in India

    GPS-Based App to Launch in India

    Image: PixPaf | Adobe Stock

    India’s Tobacco Control Cell will soon launch its GPS-based app “StopTobacco” that the population can use to lodge complaints of smoking in public places, reports The Hindu.

    The Cigarettes and Other Tobacco Products Act 2003 (COTPA) was initiated to reduce smoking in public places and protect nonsmokers from involuntary tobacco smoke exposure. Anyone violating the COTPA can now be turned in using the new app—users simply upload a picture of the public place where the smoker is located and the state’s anti-tobacco squad will respond to the area and issue a penalty to the violator.

    “We cannot be waiting for the police or municipal enforcing agency to be overburdened. This app will give us the opportunity to increase awareness about COTPA law and rules in public places, increase social responsibility for the citizens and impact positive health. This app draws a fine balance for awareness and enforcement,” said Vishal Rao, member of the state’s High Power Committee on Tobacco Control.

    A similar pilot system was launched in 2019, allowing COTPA violations to be lodged via email in 10 districts. It could not be implemented across the state, however, due to the pandemic.

    “After downloading the app, the photo of the public place where the violation is happening, such as a shop, bakery, hotel, school/college, bus station, railway station, playground, etc., can be clicked and uploaded. Then there will be an option to enter the district, taluk and mobile number of the complainant. The photo will reach the district tobacco control unit and be forwarded to the taluk tobacco control unit. As the app is GPS-based, the location from where the complaint has been lodged will be highlighted on the map, and the squad will rush to the spot,” said a senior official, adding that seven-member squads have been set up in every taluk to act on the complaints.

  • India Mulls Ban on Single Cigarette Sales

    India Mulls Ban on Single Cigarette Sales

    Photo: Africa Studio

    The Standing Committee of Parliament has proposed a ban on the sale of single cigarettes in India to help curb tobacco use, according to reports by DNA India and Latestly.

    The government should also implement a 75 percent goods and services tax (GST) on tobacco products in accordance with World Health Organization recommendations, according to DNA India. India currently imposes GSTs of 22 percent on bidis, 53 percent on cigarettes and 64 percent on smokeless tobacco. However, tax on tobacco goods has not increased significantly despite the GST, according to the committee.

    Smoking is prohibited in public places in the country, with those caught breaking the law facing a fine of up to INR200 ($2.41). Tobacco product advertisements are also banned.

  • ITC Reports Strong Quarter

    ITC Reports Strong Quarter

    Photo: Wirestock

    ITC of India reported continued strong performance across its business segments for the quarter that ended Sept. 30, 2022. The company’s gross revenue and EBITDA were up 27.1 percent year-one-year.

    Revenue from the cigarettes segment was up 23.3 percent over the comparable 2021 quarter, benefiting from a stable fiscal environment and authorities’ enforcement actions against the illicit tobacco trade.

    “As seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, continues to enable volume recovery for the legal cigarette industry from illicit trade, thereby engendering domestic demand for Indian tobaccos while also mitigating loss of tax revenue to the exchequer,” ITC wrote in a statement.

    “The company continues to engage with policymakers for a framework of equitable, nondiscriminatory, pragmatic, evidence-based regulations and taxation policies that balance the economic imperatives of the country and tobacco control objectives, cognizing for the unique tobacco consumption pattern in India.”

    ITC also reported progress in the construction of a modern facility to manufacture and export nicotine and nicotine derivatives, which is carried out by the company’s wholly owned IndiVision subsidiary.

    Designed to manufacture high-purity nicotine derivatives conforming to U.S. and EU pharmacopoeia standards, the facility is expected to be commissioned by the end of the current financial year.

  • Karnataka Gears up for Selling Season

    Karnataka Gears up for Selling Season

    Photo: Tobacco Reporter archive

    Karnataka will start auctioning its flue-cured Virginia tobacco crop in October 2022, the Tobacco Board of India announced.

    The board expects a crop of approximately 64 million kg of good quality with a comparatively high share of bright grades.

    In a letter to customers, the Tobacco Board said it is promoting various sustainable tobacco production practices, including the promotion of integrated pest management, natural farming practices, NTRM-free tobacco production, fuel conservation measures and tree planting programs to ensure product integrity and compliance with buyer requirements.

    The Tobacco Board urged leaf buyers to communicate their requirements well in advance.

    “I would request you to plan your requirements for the 2022–23 Karnataka crop well in advance for timely liquidation of the produce and early conclusion of auction sales, thereby avoiding leaf quality deterioration as well as weight loss, which could be beneficial to the farmers as well as the traders,” wrote Tobacco Board Executive Director A. Sridhar Babu.

  • Cigarette Business Boosts ITC’s Quarter

    Cigarette Business Boosts ITC’s Quarter

    Photo: Wirestock

    ITC’s cigarette business delivered strong results in the second quarter of fiscal year 2022, with segment revenue and segment results up 29 percent and 30.1 percent year-on-year respectively

    In a media statement, the company said it continues to counter illicit trade and reinforce market standing by fortifying its product portfolio through innovation, premiumization across segments and enhancing product availability backed by superior on-ground execution.

    The business also continues to launch several differentiated variants to further strengthen and future-proof its product portfolio. Recent launches include Classic Connect, Gold Flake Indie Mint and Gold Flake Neo SMART Filter.

    The company said it was encouraged by the stable tobacco tax environment and actions by India’s law enforcement agencies to stamp out illicit trade.

    “As seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enables green shoots of volume recovery for the legal cigarette industry from illicit trade, thereby engendering domestic demand for Indian tobaccos, while also mitigating loss of tax revenue to the exchequer,” ITC wrote in a statement.

    The company said it continues to engage with policymakers for a framework of equitable, non-discriminatory, pragmatic, evidence-based regulations and taxation policies that balance the economic imperatives and tobacco-control objectives, while taking account of the unique tobacco consumption pattern in India, where factory-made cigarettes account for only a fraction of combustible tobacco volumes.

  • 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.”