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Smoking ban: The economics behind it, and more!

October 3, 2008

The 'other' tobacco ban

On 1 August 2002, Maharashtra State took the unusual step of bannning manufacture, sale and purchase of pan masala and gutkha. Andhra Pradesh soon followed suit.

But in August, 2004, the Supreme Court lifted the ban imposed by Maharashtra and Andhra Pradesh governments.

Holding as "unconstitutional" the ban, a Bench of Justices K G Balakrishnan and B N Srikrishna held that Section 7(4) empowered the authorities to ban items for a temporary period as the provision was "transitory" in nature.

Maharashtra, which had as many as 25 gutkha factories in the Sangli and Kolhapur belt had said citizens flouting these rules could face imprisonment upto three years and would have to pay a fine of Rs 1,000.

According to the Jafrani Jarda and Paan Masala Manufacturers Association, the annual turnover* of the gutkha business was Rs 5,000 crore (Rs 50 billion).

Leading brands included Manikchand (annual turnover of Rs 450 crore), Vimal, Paan Parag and Rajanigandha.

Close to 400 brands manufactured in 300 factories were available in the country.

* the figures are that of 2002, when the ban was imposed.

Image: A masked school student holds a placard as his classmates offer prayers during the 'Crusade Against Tobacco' | Photograph: Sebastian D'Souza/AFP/Getty Images

Also read: India's most and least corrupt states
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