Health

KEY POINTS

·        India is the second largest consumer and producer of tobacco-based products.

India’s policy

·        The product variant structure of tobacco is complex in India as it is consumed in multiple forms like - cigarettes, bidis, chewables and khaini (smokeless).

·        Despite such various forms, GOI’s measures to reduce the use of tobacco based products are largely centred with cigarettes.

·        Despite multiple contradictory court rulings regarding the pictorial warnings on packs, the SC has presently retained the mandate for 85% space for them.

·        The average unit price of a bidi or smokeless tobacco is significantly lower than of a cigarette.

·        GST has in fact precipitated a marginal price drop for small bidi and Pan Masala packs, and only a marginal rise for other sizes.  

Impacts on India’s health care burden

·        This skewed pattern of pricing made the non-cigarette tobacco products popular among the poorer segments.

·        India’s health care burden is heavily loaded with poorer household’s health issues.

·        Thus, the pricing pattern indirectly increases India’s health care burden further.

Way forward

·        Removal of all excise and other tax exemptions irrespective of the size of the unit and restrictions on sales of loose cigarette sticks is needed.

·        A significant rise in the taxes on bidis and smokeless tobacco is needed to narrow the gap between cigarettes and other tobacco products.

·        While this will be opposed by the large number labourers involved in bidi making.

·        But, safeguarding the health of poor consumers should hold primacy when dealing with such issues.

·        Meanwhile, nudging the workforce dependent on tobacco businesses to other sectors should be taken up with vigour.

·        We hence need a more targeted taxation and retail policy on tobacco products to effectively curb their use.