ETHICAL DILEMMA IN

TOBACCO INDUSTRY
IN INDIA  Bahar Roy
Mansi Sharma
Nidhi
Pankaj
Rajat Singhal
  India is the second largest producer and
Consumer of tobacco in the world after
China
 Despite just 9% share
of tobacco consumption, legal cigarettes
contribute 80% of tax revenue.
REASONS  Tobacco is an important Commercial Crop
FOR in India.
 India: the 4th largest illegal cigarette
CHOOSING market in the world and clearly a preferred
destination for international cigarette
THE TOPIC: smugglers.
 As tobacco Industry being an Important
part of Income Tax it is very important to
see its dilemma and its effect on various
stakeholders.
 COMPANIES
INVOLVED IN
Percentage of Market Share
TOBACCO
0%0% 0%
INDUSTRY
2%
2%  ITC Ltd.

 VST Industries Ltd

 Godfrey Phillips India Ltd.

ITC

 Ashok and Company Pan

VST
Bahar Ltd.
Godfrey Phillip
 Golden Tobacco Company
The Indian Woods
Ltd.
Golde Tobacco
 Kothari Products Ltd.
NTC Idustries
 M.R. Tobacco Pvt. Ltd.

 National Tobacco Company

of India Ltd.
95%  Pataka Industries Pvt. Ltd.

 Sinnar Bidi Udyog Ltd.

  India became a Party to the WHO Framework
Convention on Tobacco Control on February 27, 2005.
 The Cigarettes and Other Tobacco Products (Prohibition
of Advertisement and Regulation of Trade and
Commerce, Production, Supply and Distribution) Act,
2003 (COTPA) is the principal comprehensive law
governing tobacco control in India. 

ETHICAL The key provisions of COTPA -2003 are as follows:

LEGISLATION  Prohibition of smoking in public places.

S  Prohibition of advertisement (direct and indirect).

 sponsorship and promotion of tobacco products.
PREVAILING
 Prohibition of sales to minors.
IN INDIA.
 Regulation of health warning in tobacco products
packs.
 English and one more Indian language to be used for
health warnings on tobacco packs.
 Pictorial health warnings also to be included.
 Regulation and testing of tar and nicotine contents of
tobacco products and declaring on tobacco products
packages.
 There are almost 267 million tobacco users in India.
 Among adults (age 15+), 28.6% currently uses tobacco
products
Secondhand Smoke Exposure:
 30.2% of adults are exposed to second-hand (passive)
smoke in indoor workplaces, 7.4% are exposed in
restaurants, and 13.3% are exposed in public
TOBACCO transportation.

INDUSTRY
 36.6% of youth (ages 13-15) are exposed to secondhand
smoke in public places, and 21.9% are exposed at home.

ON WHAT
Health Consequences:
 Each year tobacco use kills about one million Indians.

STAKE?  “Bidi” and cigarette smokers die 6 to 10 years earlier than

their non-smoking counterparts.
 If current trends continue tobacco will account for 13% of
all deaths by 2020.
Environment consequences:
 Tobacco depletes the soil nutrients at a very rapid rate
and displaces the indigenous flora and fauna thus
becoming a source of pests for other crops
1. Health Issues attached with the consumption of
Tobacco like Cancer, heart and respiratory illness.

2. If Tabaco Industry is a simple consumer goods

Industry or a legal Drug Selling business where the
drug is nicotine and the devices are cigarette.

3. How Nicotine is psychologically and physiologically

Additive. And how low tar cigarettes create false health DILEMMA IN
assurance.
TOBACCO
4. Manufacturing of Tobacco: Child labor, Adverse INDUSTRY
Environment Effect related to it.

5. Marketing and Advertising of Tobacco

6. Dilemma of Tobacco retailers in selling Tobacco to

minor
Thank You