Cigarette manufacturers shut factories over larger pictorial warnings Friday April 01,2016

As bigger pictorial warnings on tobacco products became mandatory from today Friday April 01,2016, cigarette companies announced they were stopping production, citing "ambiguity" on the issue. The move will result in an estimated loss of Rs. 350 crore a day in turnover for the tobacco industry.

"Owing to ambiguity on the policy related to revision of graphic health warning on tobacco product packs, the members are unable to continue manufacturing cigarettes from April 1," read a statement from the Tobacco Institute of India or TII.

The notification by Health Ministry on September 24, 2015, for implementation of the Cigarettes and Other Tobacco Products (Packaging and Labeling) Amendment Rules, 2014, comes into force from today. These prescribe larger pictorial warnings on tobacco products.

The ministry had made a commitment to Rajasthan High Court on March 28 that it will implement the said rules from April 1, 2016.

The Parliamentary Committee on Subordinate Legislation had described as "too harsh" the government's proposal that 85 per cent of the packaging surface carry pictorial warnings and recommended that the message occupy 50 per cent of the space. The stand had evoked sharp criticism from MPs and health experts.

TII said, "the extreme 85 per cent warnings will promote illegal cigarette trade and adversely affect the livelihood of 45.7 million people dependent on tobacco which included farmers, labour, workers, trade and others."

It further claimed that "illegal cigarettes account for one fifth of the total cigarette industry resulting in annual revenue loss of Rs 9,000 crore to the national exchequer."