New Delhi: Tobacco products manufactured from Friday onwards will carry larger pictorial warnings covering 85 per cent of the display area on the packet as the Centre's notification in this regard went into force.
The Health Ministry's notification of September 24, 2015, for implementation of the Cigarettes and Other Tobacco Products (Packaging and Labelling) Amendment Rules, 2014, prescribing larger pictorial warnings on tobacco products came into force on Friday.
Notwithstanding a parliamentary panel's recommendation which had described the government's proposal as "too harsh" and wanted a drastic reduction in the size of the visual warning, the Centre went ahead with the larger pictorial warnings.
The Parliamentary Committee on Subordinate Legislation had recommended that the message occupy 50 per cent of the space.
"The committee is of the view that in order to have a balanced approach, the warning on cigarette packets should be 50 per cent on both sides of the principal display area instead of 85 per cent of the principal display area as it will be too harsh and result in the flooding of illicit cigarettes in the country," the committee said in the report.
Health Ministry had also told the Rajasthan High Court that its legislative authority is examining the observations/recommendations of the Parliamentary Committee on Subordinate Legislation.
The stand had evoked sharp criticism from MPs and health experts.
In its report submitted to Lok Sabha, committee chairman Dilip Gandhi justified the recommendations, saying it was urged that the size of the warnings be increased from the present 40 to 50 per cent.
The ministry had made a commitment to the Rajasthan High Court on March 28 that it will implement the said rules from April 1, 2016.
Meanwhile, major cigarette manufacturers including ITC, Godfrey Philips and VST have decided to shut all their factories and stop manufacturing with effect from Friday in the wake of larger pictorial warnings covering 85 per cent of the packaging space coming into force.
The companies, which are members of Tobacco Institute of India, who account for more than 98 per cent of the country's domestic sales of duty paid cigarettes in India claimed the estimated production revenue loss of over Rs350 crore per day for the tobacco product manufacturers.
"Owing to ambiguity on the policy related to revision of Graphic Health Warnings on tobacco product packs, the members are unable to continue manufacturing cigarettes from April 1, 2016," Tobacco Institute of India (TII) said in a statement.
TII Director Syed Mahmood Ahmad said Indian tobacco industry had written to Ministry of Health and Family Welfare on March 15, seeking clarification on the matter.
Fearing, potential violation of rules by continuing production, TII members have decided to shut their factories, the statement said.
"The move will result in an estimated loss of Rs350 crore per day in production turnover for Indian tobacco industry," it said.
TII said, "the extreme 85 per cent warnings will promote illegal cigarette trade and adversely affect the livelihood of 45.7 million people dependent on tobacco which included farmers, labour, workers, trade and others."
It further claimed that "illegal cigarettes account for one fifth of the total cigarette industry resulting in annual revenue loss of Rs 9,000 crore to the national exchequer."