Indian Cigarette Manufacturers Freeze Production
Submitted by Gurpreet Singh on Fri, 12/03/2010 - 14:20
Cigarette plants across India remain close due to doubt over pictorial warnings on the packets of cigs.
In May 2010, the Ministry of Health and Family Welfare advised that all tobacco product packages in India should carry graphic health cautions showing a cancer- stricken mouth, etc, from December 1, 2010.
Industry members have forwarded a note to the health ministry looking for explanation on the pictorial warnings.
But, the Cigarette business alliance has no idea on when the tobacco plants will start functioning.
Tobacco giant ITC announced that it had stopped cigs output across its five manufacturing facilities.
Likewise, other cigarette manufacturers including Godfrey Phillips India (GPI) have also blocked the cigs production.
The majority of companies normally carry an inventory level of 10 days to a month, so there is little possibility of an affect on availability instantly.
Reacting to the blackout in manufacture, union health minister Ghulam Nabi Azad stated that the administration may appraise the new cigarette pictorial warning order and may order cigarette firms to alter pictorial caution in 2-3 years.
The cigarette-making closure is leading to tax loss for the administration and there could be vast job losses if cigarette manufacturers close down their workings.
