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Smoking ban: The economics behind it, and more!

October 3, 2008

Tobacco lobby up in arms

ITC and Indian Hotels Association had moved the Delhi high court challenging the Union government's notification banning smoking in "public places", including hotels and restaurants, from October 2.

They had argued that the notification made no distinction between private space and public space.

A Supreme Court bench headed by Justice B N Agarwal had on September 29 refused to stay the Central government's notification and transferred the cases back to Delhi high court, which has set November 18, as the first hearing date.

Supreme Court also clarified that "no court in the country shall pass any order in derogation of this order."

However, ITC and Godfrey Phillips India have put up 'nosmoking' boards across all their offices, removed ash trays and sent notifications to every employee that the no-smoking ban is here to stay.

ITC, which earned 48 per cent of its net sales from tobacco, has diversified into hotels, consumer products, information technology and paper businesses to stay away from 'cigarette-only' image.

Worried officials of tobacco companies are gearing up for a slowdown, as they fear that sales could plunge is the ban is implemented seriously.

The tobacco firms are also lobbying hard against unregulated industries like beedies and chewing tobacco, which they say make up for 85 per cent of the Indian tobacco industry.

Wondering how anyone can regulate the unorganised tobacco sector, the 'puff brigade' feels ban on smoking in offices and restaurants are not tenable and it's unnecessary harassment and encroachment on personal freedom.

Image: A woman uses a combination of chewing tobacco and tendu leaves to make 'beedis' in Karimnagar, some 160kms north of Hyderabad | Photograph: Noah Seelam/AFP/Getty Images

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