India's Tobacco Conundrum: A ₹6 Lakh Crore Market
India is the second-largest consumer of tobacco, with North East men being the highest consumers. Despite staggering deaths caused by tobacco consumption every year, the government has not banned its production.
Fri, 28 Jun 2024
According to a recent tweet by FinFloww, India is the second-largest consumer of tobacco on earth, with North East men being the highest consumers. Despite the staggering number of deaths caused by tobacco consumption every year, the government has not banned its production. Instead, it has imposed regulations on mixing tobacco with food items.
The origins of Pan Masala can be traced back to ancient Ayurvedic texts, where betel leaves were used as a mouth freshener. Over time, tobacco was added to the mixture, making it a popular product in India. However, the government's ban on mixing tobacco with food items has led to companies selling Pan Masala and processed tobacco separately.
The Indian government imposes four taxes on tobacco and tobacco products, which contributes significantly to the agricultural economy and secures livelihoods for millions of people. In FY22, the central GST collected from suppliers of tobacco products was a whopping ₹19,329 crore. However, only ₹83,000 crore was allocated to combat the health crisis caused by tobacco consumption.
India's position as the second-largest exporter of tobacco also poses challenges in imposing a ban on its production. With international trade agreements at stake, it is essential for the government to find a balance between public health and economic considerations. As the country aims to become a ₹6 lakh crore market by 2032, addressing this issue becomes increasingly crucial.
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