[Intl-tobacco] India to Ban Tobacco Sponsorship, Public Smoking (fwd)

[Robert Weissman]

India to Ban Tobacco Sponsorship, Public Smoking
by SUROJIT GUPTA / Reuters
Source: Reuters, Tuesday, 2/6/01

NEW DELHI--The Indian government said on Tuesday it planned to ban smoking
in public places and the sponsorship of sporting events by tobacco firms
in a bid to lower cigarette-related deaths.

      The government also announced plans for legislation to end
sponsorship of cultural events by cigarette and tobacco product companies.

      "The bill provides that no person engaged in tobacco products
related activity will advertise and no person having control over media
shall advertise tobacco products," a government statement said.

      The measures were aimed at cutting the large number of premature
deaths in India from smoking and to bolster an anti-tobacco drive, cabinet
spokesman Pramod Mahajan told reporters following a cabinet meeting.

      "Of the estimated three million tobacco-related deaths (per year) in
the world, nearly one-third take place in India," he said.

      The announcement hit the share prices of Indian tobacco companies in
late afternoon trade on the Bombay stock exchange.

      India's largest tobacco firm, ITC Ltd. closed at 878.25 rupees, down
16.65 rupees from the previous close while Godfrey

Philips was down by 33 rupees to 540 rupees.

      "The news is negative," said Komal Iyer, assistant vice-president,
institutional sales at Anand Rathi Securities.

      An ITC spokesman said the company would only comment after studying
the proposal and its implications.

      The harmful effects of tobacco use have become an increasing topic
of concern among Indian policymakers and Prime Minister Atal Behari
Vajpayee's government, which had said it planned sweeping tobacco control
legislation.

      "I expect this legislation to have a smooth sailing in parliament.
This a very good legislation and has a scientific background which will
help society," Health Minister C.P. Thakur told Reuters.

      He said the proposed ban on sponsorship of sports and cultural
events by tobacco and cigarette companies would not have any impact on
these activities.

      "Sports were held even before the invention of cigarettes.

It is not that sports and culture can flourish only because of cigarettes
and tobacco," Thakur said.

      TOBACCO COSTS HIGH

      Mahajan said treatment of tobacco-related disease in India cost
135.17 billion rupees or $2.9 billion, far more than the nationwide sale
value of all tobacco products.

      The Tobacco Institute of India, a tobacco lobby group, made no
immediate comment on the planned legislation.

      The measures would be part of a comprehensive tobacco control bill
to be introduced in the next session of parliament that starts on February
19, the government said.

      The bill also would ban sale of tobacco products to youngsters below
the age of 18 and oblige companies to put nicotine and tar content
warnings in English and Hindi, India's national language, on packaging.

      People smoking in public places would face fines of up to 100 rupees
($2.15) while other offences would carry a maximum prison term of three
years and fines of up to 100,000 rupees ($2,155). Subsequent convictions
could mean a fine 200,000 rupees.

      Anti-smoking campaigners have accused tobacco firms of aggressively
promoting their products in developing countries such as India and China
to offset a shrinking market share in the developed world.

      Thakur said he would ask other government departments to find ways
to stop the production of tobacco and find alternative employment for
tobacco farmers.

      "Tobacco farming has to be replaced by another cash crop. I will
suggest they grow medicinal plants. There is a need for medicinal plants
all over the world. There is a world market of about $63 billion," Thakur
said.

      So far, some 55 countries have passed legislation to discourage
tobacco consumption while 21 have imposed a ban in one form or another on
advertisement of tobacco products, the government said.