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Smoking ban: The economics behind it, and more!

October 3, 2008

Call centre workers upset

Smokers, particularly young ones, are quite dismayed. Call centre workers too are a worried lot as they have no clue about how they will get through the long graveyard hours without a puff or two.

Restaurant and bar owners have also pointed out that India is quite famous for rolling back 'strict' ban, and they point to what happened to 'plastic ban' that was in vogue a few years ago.

While keeping their fingers crossed, they are hoping that the ban will be eased a bit, and eateries, which have the liquor licence will be kept out of this smoking ban in future.

But that is tomorrow's tale, right now the government is quite bullish that the ban will be in place and the country to a great degree will be smoke free. And how is India Inc reacting? Will their profit margins be hit?

Revenue from tobacco
According to government estimates though the tobacco industry earns a revenue of Rs 27,000 crore (Rs 270 billion) billion every year, the treatment cost of smoking related diseases is well beyond Rs 30,000 crore (Rs 300 billion).

Figure from India's Tobacco Board shows that during April to August, 2008, tobacco export rose 25 per cent to over one lakh tonnes from 81,110 tonnes in the year-ago period, the Tobacco Board said. In value terms, total exports rose 64 per cent at Rs 1,281 crore (Rs 12.81 billion), it said.

India exports tobacco leaf as well as ready products such as cigarette, cigars, bidi and hookah.

Image: The shisha (hookah) bars are popular in China and some parts of England | Photograph: Bruno Vincent/Getty Images

Also read: Durga Puja: It's a million dollar business
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