What is happening to ITC
A report in the Economic Times said, apart from banning sale of loose cigarettes and raising the minimum age of smoking to 25 (which had been reported earlier), the note sent to Cabinet suggests several other measures.
These include banning designated smoking zones in hotels and airports, banning tobacco advertising on Internet and mobiles, discouraging efforts by tobacco companies to earn goodwill through CSR, dropping nicotine/tar details on cigarette packs lest they may appear to users as ‘safe’, and setting up special courts to try offences related to anti-tobacco law among others.
ITC shares plunged 5 percent on Tuesday after it emerged the government was considering banning sale of loose cigarettes (which constitute 70 percent of cigarette sales) and raising the minimum age of smoking.
But they recovered some ground yesterday, rising about 2 percent, after analysts said a ban on sale of loose cigarettes, perceived to be the toughest measure to curb smoking, may be difficult to implement as it would be practically impossible to monitor the 7.5 million small stores around the country that sell the product. As also, cigarette companies could resort to coming out with packs of fewer than 10 sticks, something they have done in the past.
Moneycontrol.com
A report in the Economic Times said, apart from banning sale of loose cigarettes and raising the minimum age of smoking to 25 (which had been reported earlier), the note sent to Cabinet suggests several other measures.
These include banning designated smoking zones in hotels and airports, banning tobacco advertising on Internet and mobiles, discouraging efforts by tobacco companies to earn goodwill through CSR, dropping nicotine/tar details on cigarette packs lest they may appear to users as ‘safe’, and setting up special courts to try offences related to anti-tobacco law among others.
ITC shares plunged 5 percent on Tuesday after it emerged the government was considering banning sale of loose cigarettes (which constitute 70 percent of cigarette sales) and raising the minimum age of smoking.
But they recovered some ground yesterday, rising about 2 percent, after analysts said a ban on sale of loose cigarettes, perceived to be the toughest measure to curb smoking, may be difficult to implement as it would be practically impossible to monitor the 7.5 million small stores around the country that sell the product. As also, cigarette companies could resort to coming out with packs of fewer than 10 sticks, something they have done in the past.
Moneycontrol.com
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