Beedi, cigarette production halt may lead to Rs 200-crore daily loss

Beedi manufacturers have followed cigarette manufacturers and halted production. The move has been made in response to the government's order of now printing health warnings covering 85% of the cigarette packets. 

The All India Beedi Industry Federation, a body of over 240 manufacturers controlling over two-third of the total branded beedi production, said the loss incurred due to the production stoppage will be around Rs 200 crore daily.

On September 24, 2015, the Health Ministry issued a notice for the implementation of the Cigarettes and other Tobacco Products (Packaging and Labeling) Amendment Rules, 2014, with effect from April 1, 2016. The notification prescribed larger pictorial warnings, covering 85% of packets on tobacco products.

All India Beedi Industry Federation’s views

AIBIF Member Arjun Khanna said, "We are supporting the cigarette industry on this issue. The shutting down of beedi production meant for the domestic market will lead to a daily loss of Rs 200 crore."

"As per the notification, beedis cannot be produced without this new enhanced pictorial warning from April 1, 2016... It is not possible to print the warnings...as the curved area and wrapping paper edges prevent printing on a reasonably large area of the curved surface," AIBIF said.

The practical impossibility implies that the beedi industry cannot implement the new warning rules in its present form, the federation added.

"Therefore, it is not possible to produce beedis without violating the law. Being a law abiding industry, there is no option but to stop production," it said.

(With inputs from Agencies)