The Hindu : National : ``Warning signs will hike cost''

Online edition of India's National Newspaper
Tuesday, Jan 02, 2007
ePaper

National

National

``Warning signs will hike cost''

Special Correspondent

Small companies already facing competition: beedi industry

NEW DELHI: The All-India Beedi Industry Federation has said the mandatory pictorial warning signs on packs of cigarette and other tobacco products will mean the production cost going up by five to 10 per cent.

In a statement here on Monday, it said the size would require a new packing printing format. Signs of the skull and bones, made mandatory by the Union Health and Family Welfare, must be carried from this year.

The Government has specified that the skull and cross bones symbol should be 1.2 cm long and one cm wide, and the health warning should occupy four cm.

The federation said there would be hardly any space left to print the brand name and the company symbol as 70 per cent of the space on the packet will occupy the Government's message.

Ultimately, the demand for beedis would be hit, the consumer being mostly poor, and the units might face closure.

Pointing out that small companies faced stiff competition from big manufacturers, the federation said the rise in prices of tobacco and tendu leaves already led to an increase in beedi prices, thereby hurting demand.

It said the organised sector manufactured daily around 150 crore beedis, 80 per cent of which were consumed by labourers.

If the demand for beedis dwindled, tobacco farmers would also be affected.

Printer friendly page
Send this article to Friends by E-Mail

National

News Update

Stories in this Section