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Tobacco industry braces for impact as Dr. Harsh Vardhan takes over

Tobacco industry braces for impact as Dr. Harshvardhan takes over

Dr Harsh Vardhan has been re-elected as a part of Prime Minister Narendra Modi’s Cabinet. During his last tenure as a cabinet minister, Dr Vardhan was responsible for three ministry portfolios. His contribution as a Minister of Health and Family Welfare brought him into the limelight. He stirred mayhem into the cigarette industry by enforcing new regulations.

 

How did it begin?

 

Dr Harsh Vardhan, after becoming the Minister of Health in May 2014, declared a few amendments. These amendments were suggested in the Cigarettes and Other Tobacco Products Rules, 2008. The rules mentioned the requirements of Packaging and Labeling of tobacco-based products. Furthermore, the amendments mandated that the health warnings and ill-effects of tobacco will cover a minimum of 85% of the principal display area of the box. Out of this 85%, a pictorial health warning will cover 60% and the other 25% shall cover textual health warning. These amendments were to be enforced from April 1, 2015. The tobacco industry witnessed the rage of the industrialists against these amendments. As a result, Dr Harsh Vardhan was dismissed from the Health Ministry within the next month.

 

Court Battle

 

A survey report released by the Ministry of Health and Family Welfare depicted that 62% of cigarette smokers had thought of quitting because of the warnings on the packages. 46% of tobacco consumers had also thought of quitting because of the 85% warning of the packets. The initiative by the Ministry to control tobacco consumption pan India had saved 81 lakh lives, as per the survey.

 

However, the tobacco industry begs to differ all the reports and approached the Karnataka High Court to fight against the amendments. No correlation established between tobacco consumption and the diseases pictured as warnings on the packages Furthermore, they said their right to conduct business was being unfairly affected by these amendments. The court set precedent and ruled in favour of the plaintiff. The amendments enforced by Dr Harsh Vardhan were dissolved. Previously practised norms were re-instated. The court ordered that pan India should renege to the 40% warnings rules. 

 

After Dr Vardhan was removed from the Ministry of Health and Family Welfare, he was given charge of Ministry of Earth Sciences and Ministry of Science and Technology. Following the death of Union Minister, Mr Anil Dave in May 2017, additional charge of the Ministry of Environment, Forest and Climate Change was given to Dr Vardhan.

 

Present Scenario 

 

Dr Vardhan was a pioneer against tobacco and drug abuse in his tenure as Minister. He is also responsible in the enactment of the several laws including Non-Smokers Health Protection Act and Delhi Prohibition of Smoking in Public Places. Therefore, after the appointment of Dr Harsh Vardhan as the Minister of Health in the 17th Cabinet, the tobacco industry is in turmoil. 

 

Indian Tobacco Company (ITC), manufacturer of 14 cigarette brands will be highly affected if new regulations come into the picture. With most of its cigarette brands being on the premium shelf, ITC will have to bear a huge loss. Insignia, India Kings, Classic, Gold Flake, American Club, are some of its premium brands. ITC is trading at Rs 276.85 on 3rd June’19 down by 2% from its previous closing.

 

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