ITC, Godfrey Phillips stop cigarette production

Agencies

New Delhi, 03 December 2010: Tobacco major ITC and Godfrey Phillips India (GPI) have suspended their production nationwide from December 1 to protest the recent order by the Centre for health warnings on cigarette and beedi packets.The tobacco manufacturers have stopped production of cigarette after uncertainty over pictorial warnings.

 

The Government will lose nearly Rs 100 crore in excise daily. New pictorial warning was to come into effect on December 1, 2010.Cigarette and beedi manufacturers say conflicting statements have come from the Health Ministry and the Group of Ministers (GoM) on tobacco warnings.

 

Industry sources say nearly one month’s stock of cigarettes is available and that they don’t see any immediate supply disruption or a price rise. Government yet to respond on matter, sources said.

 

The West Bengal government on Thursday sought Centre’s intervention in resolving the indefinite suspension of production by beedi merchants, saying it was affecting livelihood of 20 lakh beedi workers in the state.