Tuesday, December 7, 2010

Tobacco...........Mission Impossible.

India is world’s third largest producer of leaf tobacco. It is also a very large consumer of tobacco products. Tobacco is one of the important cash crops in the country and makes a significant contribution to the Indian economy in terms of employment, income to government revenue. It generates nearly Rs. 20 billion of income per annum.
Total consumption of tobacco products has been increasing in India, as in many other developing countries ,notwithstanding the increased awareness of negative health effects. Total tobacco consumption increased from around 300000 tonnes in 1972 to 450000 tonnes in 1999 an increase of 1.6 precent annually. Only about 20 percent of the total tobacco consumed in India(by weight) is in the form of cigarettes. Bidis account for about 40 percent of tobacco consumption (about 950 billion bidis),with the rest divided amoung chewing tobacco, pan masala, snuff, hookah, zarda and other mixtures. Cigarette smoking is essentially an urban areas, while 80 percent of bidi smokers are in rural areas .
Per capita consumption of cigarettes remains very low by international standards. This reflects the lower level of incomes and the substantial use of cheaper alternative tobacco products resulting .from traditional habits that are supported by the very low or non existent taxes on these products. Manufactured cigarettes, on which heavy exise duty is levied ,remain unaffordable for many . Per capita consumption of cigarettes declined from 99 pieces in 1990 to 87 pieces in 1993. However, the reduction in taxation on small non filter cigarettes in 1994 attracted more smokers to switch from bidis, and also encouraged downgrading both of which have helped increase per capita consumption quite substantially in the latter half of the 1990s. Thus , per capita consumption had reached 108 pieces per year by 1997.
Government policy regarding consumption of tobacco products applies mainly to its taxation measures and a limited control on use of tobacco products . The motivating rationale for tobacco taxation seems to be fiscal (ie. To maximize the excise revenue). Measures to control the use of tobacco on health grounds seem to have had only a small impact, partly because only a few control measures are in place ,and those are not fully implemented. These measures include ban on advertising cigarettes, banning smoking at public places. But these bans are not implemented strictly .
Tobacco production is an important source of income for Indian farmers . While alternative crops are available in terms of agronomic suitability, in general a move away from tobacco production would result in reduces income and food security for a considerable number of farmers. Manufacturing ,particularly of bidis, is also a source of employment and hence of income for a large number of people . Thus any attempts to control the use of tobacco would need to take into account the economic impact on these sectors.
So the mission seams to be impossible for the person who uses it as well as the government who can ban its use.