Tobacco Industry Interference in South Asia - July 2022
Contents
Background
This is the second of the monthly page series that summarises tobacco industry interference and their activities reported during the previous month in the South Asian region. When relevant, this series will feature the cannabis industry as well, as it is majorly backed by the tobacco industry. South Asia includes eight (8) countries, namely, Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. This page is a compilation of the data from the investigative research findings of [www.cct.lk CCT | Centre for Combating Tobacco (CCT)], in partnership with the [www.sarccct.org South Asian Regional Consortium Centre for Combating Tobacco (SARC-CCT)]. This page will be continuously updated as and when incidents related to the respective month are reported.
The Country Summary
Table 1 summarises tobacco and cannabis industry interference and activities reported according to the country during the month of July 2022.
Table 1: Summary of reported tobacco and cannabis industry interference
| Reported Countries | Tobacco Company | Number of Incidents | |
|---|---|---|---|
| Afghanistan | - | 0 | |
| Bangladesh | British American Tobacco (BAT) | 2 | |
| Abul Khair Tobacco Company (ATCL) | 1 | ||
| Bangladesh Electronic Nicotine Delivery System Traders Association (BENDSTA) | 1 | ||
| Bhutan | - | 0 | |
| India | ITC Limited India | 7 | |
| Maldives | - | 0 | |
| Nepal | - | 0 | |
| Pakistan | - | 0 | |
| Sri Lanka | Ceylon Tobacco Company (CTC) | 1 | |
The details of the reported incidents are mentioned below:
Afghanistan
No incidents reported for this month.
Bangladesh
- British American Tobacco Bangladesh (BATB) announced an increase of revenue by 7.62%, summing up to BDT 4,133.80 crore (approx. USD 438 million) during the first half of the year 2022 compared to the same period in 2021. It further reported that the increase of revenue in the second quarter of 2022 from BDT 1,799.11 crore ( pprox.. USD 190 million) to BDT 2,180.78 crore ( pprox.. USD 231million) compared to the same period in 2021 which was an increase of 21%. [1]
- Abul Khair Tobacco Company (ATCL) reportedly promoted its brands using posters in stores mentioning “Return 10 empty packs to get one pack of Sunmoon and a Flame box match”. [2]
- Promotion at the point of sale is banned by the Smoking and Usage of Tobacco Products (Control) Amended Act 2013 in Bangladesh.
- British American Tobacco (BAT) announced the opening of the “Battle of Minds” competition and conducted a roadshow with the registrants. Tobacco Industry Watch e-newsletter reported that around 250 students from engineering and technology universities participated in this roadshow. Battle of Minds is partnered with Btomorrow Ventures (BTV), the cooperate venturing arm of British American Tobacco (BAT). As per their website they claim “to discover the brightest, early-career business minds around the globe”.[3][4] [5]
- Bangladesh Electronic Nicotine Delivery System Traders Association (BENDSTA) opposed the draft amendment bill of the Smoking and Usage of Tobacco Products (Control) Act proposed by the Minister of Health. New amendment includes a ban on vaping products following the vision of Prime Minister to create a tobacco free Bangladesh by 2040. BENDSTA explains the vaping products as a ‘quitting tool’ for the smoking quoting a report of Consumer Choice Center (CCC). CCC is a lobbying group based in United States funded by Japan Tobacco International (JTI) and Phillip Morris International (PMI). BENDSTA further demanded the minister to discuss with them any decision related to vaping products before making such decisions, and also to create a separate category for vaping products. BENDSTA is a trade association including all major vape product importers in Bangladesh, which reportedly “promotes constructive interaction between this industry sector and the scientific community, vapers, policy makers, and the general public” as stated in their website. [6]
- Article 5.3 of the Framework Convention on Tobacco Control (FCTC) recommends measures to the Parties to protect their public health policies from commercial and other vested interests of the tobacco industry. Tobacco industry is known for producing its own “evidence” to manipulate the science related to the public health policies, and also to use front organisations and lobbying groups to further their interests. Scientific evidence has revealed many harms related to vaping and using smoke-free products, including causing addiction and harm to lungs.
Image 1: Media reporting BENDSTA opposing the new draft amendment bill at the press conference[6]
Bhutan
No incidents reported for this month.
India
- Aashirvaad Atta, packeted atta brand of ITC Limited India, sponsored the Puri Rath Yatra festival in Odisha state. Atta is whole meal wheat flour, and Puri Rath Yatra is a Hindu festival that include a public procession with a chariot with the deities. ITC has set up a chamber decorated with traditional art for devotees to see the chariot procession and get a glimpse of the lord. It is reported that the winners of a game related to atta making process got the access to the top of the chamber and to view the chariot procession via the installed telescopes from this floor. [7]
- ITC Limited India announced the expansion of their Social and Farm Forestry programme across 19 districts for ‘sustainable rural livelihoods’. ITC supports the farmers to grow eucalyptus on their lands providing saplings and the technical assistance under this programme. Pulpwood plantation is used as raw material for paper manufacturing for ITC. [8][9]
- A plethora of evidence has revealed that tobacco cultivation and cigarettes manufacturing process negatively impact the environment including contributing to deforestation, water pollution, global warming and, thus, human health. Growing Eucalyptus causes negative impacts on environment such as inducing soil degradation, reducing the groundwater level, and decreasing the biodiversity. Tobacco Industry uses same strategy to cultivate tobacco in Sri Lanka providing agricultural inputs under the theme “Sustainable Agriculture and Environment”. Please visit the page | Sustainable Agriculture Development Programme (SADP) for more details.
- Media reported that ITC Limited India was included in the top 10 stocks in terms of market capital in late February 2022 with a market capital of INR 363,006.9 crore ( pprox.. USD 45.7 billion).[10]
- ITC Limited India announced the expansion of value-added agri-products (VAAP) portfolio which consists of spices, coffee, frozen marine products, and processed fruits targetting the local and export market. ITC Agri Business is one of the diversified business categories of ITC Limited India, the main tobacco company in India which is involved in tobacco cultivation as well. [11]
- Indian Institute of Soybean Research (IISR) signed an agreement with ITC Limited India to train the farmers in five districts of Madhya Pradesh to enhance the yield with technical assistance. IISR is engaged in soybean research and development in India which is under the Ministry of Agriculture and Farmers’ Welfare. [12]
- Article 5.3 of Framework Convention on Tobacco Control (FCTC) recommends the governments not to have any partnership with the tobacco industry. Such partnerships have a fundamental irreconcilable conflict of interest with public health.
Image 2: Media reporting Indian Institute of Soybean Research (IISR) signing the agreement with ITC [12]
- Media reported that ITC Limited India launched an app named Meta Market for Advanced Agriculture and Rural Services (ITC-MAARS) in seven states “to provide agricultural and allied services to farmers on a digital platform”.[13]
- ITC Limited India is the main tobacco company in India, which is involved in tobacco cultivation as well. In Sri Lanka, tobacco farmers are misled by the industry via material on credit and forward buying approaches and being exploited.[14]
- Sanjiv Puri, Chairman and Managing Director of ITC Limited India, mentioned that the cigarette business was highly impacted by the illicit trade in past years, but now it has recovered. He further stated at the Annual General Meeting of ITC that the ITC will continuously focus on countering the illicit trade and strengthening their product portfolio.[15]
- This is a common claim made by tobacco companies to justify their low sales volumes and evade potential tobacco tax increases. Tobacco companies are known for their involvement in the illicit trade in many parts of the world. Please visit the pages Tobacco Industry Tactics to Evade Tax and | Ceylon Tobacco Misleading Shareholders: The Illicit Cigarettes Issue] for more details.
Nepal
No incidents reported for this month.
Maldives
No incidents reported for this month.
Sri Lanka
- Media reported that the gross revenue of Ceylon Tobacco Company (CTC) is estimated to increase by 6% in the next two years, quoting a research conducted by First Capital research. The reasons mentioned for the increase were continuous price increases and the reawakening of the tourism industry. First Capital provides diversified financial services under the First Capital Holdings PLC as stated in their website. [16]
- In May 2022, CTC declared an increase of sales volume by 5% in first quarter of 2022 compared to same period in 2021. The price of a cigarette stick has been increased by Rs 5 with effect from 1st June 2022.
Image 3: Media reporting the CTC’s estimated increased gross revenue in next two years[16]
TobaccoUnmasked Resources
- British American Tobacco (BAT)
- ITC Limited India
- Ceylon Tobacco Company (CTC)
- Framework Convention on Tobacco Control (FCTC)
- FCTC Article 5.3
- Tobacco Industry Interference in South Asia - June 2022
Notes
- ↑ The Business Standard. BAT Bangladesh posts revenue and profit growth in H1, 30 July 2022, accessed August 2022
- ↑ Tobacco Industry Watch BD. Abul Khair Violating Tobacco Control Law, June 2022, accessed August 2022
- ↑ Tobacco Industry Watch BD. End ‘Battle of Minds 2022’, Save Youth, June 2022, accessed August 2022
- ↑ British American Tobacco. Let the Battle of Minds begin!, 6 June 2022, accessed August 2022
- ↑ Facebook. British American Tobacco Global Careers, 7 July 2022, accessed August 2022
- ↑ 6.0 6.1 NTV Online. BENDSTA calls for scrapping vape ban from draft Tobacco Control Amendment bill, 5 July 2022, accessed August 2022
- ↑ Pragativadi. Aashirvaad Atta Initiates A Digital ‘Darshan’ Experience For The Pilgrims At Puri Rath Yatra, 1 July 2022, accessed August 2022
- ↑ S Das. ITC to raise pulpwood production by 42% to 5 MT, 13 July 2022, accessed August 2022
- ↑ Millennium post. ITC's initiative promotes rural livelihood, afforestation, 15 July 2022, accessed August 2022
- ↑ A Manohar. ITC back in India’s top 10 stocks by market cap, shares up 10% in one month, 14 July 2022, accessed August 2022
- ↑ S Roy. ITC looks to scale up value-added agri products portfolio, 3 July 2022, accessed August 2022
- ↑ 12.0 12.1 The Times of India. Madhya Pradesh: Soybean institute pens MoA with ITC, 24 July 2022, accessed August 2022
- ↑ I A Dutt. ITC launches super app 'ITCMAARS' to boost agricultural business, 21 July 2022, accessed August 2022
- ↑ Centre for Combating Tobacco. Tobacco Cultivation in Sri Lanka: Past, Present and Future, undated, accessed November 2022
- ↑ A Mudgill. ITC AGM Key Highlights: FMCG business, new launches, export potential & more, 20 July 2022, accessed August 2022
- ↑ 16.0 16.1 The Island Online. Ceylon Tobacco Company PLC: Fags ignite bottom-line boost, 11 July 2022, accessed August 2022
