Indian Tobacco Industry Essay

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Tobacco is a one of the major crops in india, Despite the health issues, tobacco industry contributed significantly to the economy in terms of employment. According to the government and revenue it was the second largest sector in terms of central exercise of revenue contribution after oil gas sector. The industry act as a major foreign exchange earner for the government. Besides tobacco farming and production, the Indian tobacco industry also consists of companies involved in manufacturing, sales and distribution of tobacco products like cigarettes, cigars, beedis and chewing tobacco. The Indian tobacco market grew at a strong rate during the period 2006-2012, as there is strong sales growth in the cigarettes, loose tobacco and the cigars…show more content…
The incidence of tobacco consumption especially in smoking is on the rise among teenagers and youngsters. Tobacco consumption in India is extensive and an inherent tradition. In spite of the government’s execution of several measures, comprising smoking bans and high tobacco taxation, the smoking prevalence has remained more or less consistent since the 1990s. Smoking is considered to be quite fashionable, especially among youngsters. Most consumers of tobacco have addicted to the habit before reaching the age of 18-years-old. While smoking has always been socially acceptable in India, the bulk of it is consumed in the form of bidis. With growing disposable incomes, still, consumers are estimated to shift to cigarettes. Cigarettes are deliberated to be fashionable and young executives smoke them to fit in with their peer group. With rapid urbanization and increasingly hectic and nerve-wracking way of life. Smoking is seen as a way to relive…show more content…
Only two advertising boards gauging three by two feet can be displayed at point of sale locations, and the boards cannot be adorn or illuminated. Mandatory warnings such as “Cigarettes will not be sold to people below 18 years of age” and “Usage of tobacco is injurious to health” must be displayed at all point of sale locations for all tobacco products. These restrictions allow retailers to demand huge premiums from tobacco companies in exchange for promotion and publicity. Shelf space is also sold at premium prices, in both kiosks and retail outlets operated by street vendors. All tobacco companies hold exclusive contracts with retailers to ensure that their brands are allocated the most visible shelf locations, and organized so that the front side of the packs and the brand name are facing outwards instead of sideways. SWOT Analysis of Tobacco in India Strengths India holds top rank in manufacturing of tobacco. Have a large section of 5.8 % of the international trade Cost of tobacco manufacturing is relatively less in India Indian tobacco has lower levels of cadmium and lead, tobacco specific nitrosamines, and pesticide compared to other tobacco producing countries. Vast land availability for cultivation Weaknesses: High level of Taxes Lack of harmonious environment between

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