India’s ITC Says Will Resume Cigarettes Production Soon; Why Did The Company Halt Manufacturing?


India’s cigarette maker ITC Ltd. will soon resume production of cigarettes in its factories after a favorable high court order.

The company, in which British American Tobacco also owns a stake, disclosed a new filing that “consequent upon a high court order passed in favor of the company, the company will soon resume manufacture of cigarettes in its factories,” Reuters reported.

ITC was not agreed with the new Indian government policy that 85% of a cigarette pack’s surface should be covered in health warnings.

Cigarette makers, including ITC, raised concerns over this policy and said that it was unclear.

It is still not clear whether ITC would print bigger health warnings on its packs. Earlier this month, the company said it will not going to print bigger, “excessive” health warnings.

Officials from Indian health ministry said that manufacturers must comply with the new rules, which became effective April 1.

Smoking kills more than 1 million people a year in India, according to BMJ Global Health. According to the World Health Organization, tobacco-related diseases cost the country $16 billion annually.

Source: Reuters