Gutkha companies bypass ban, bring new fix as substitute
Cheewing tobacco, pan masala are sold in two different packets, when mixed creates proper substitute for gutkha
When there is a will, there is a way. It is true, at least for the gutkha manufacturers in India.
Within a few weeks, after 14 states banned production, sale and marketing of gutkha, manufacturers have cleverly bypassed the ban with a new fix. Instead of the earlier “ready to consume mixes”, companies are selling gutkha in a new avatar — where chewing tobacco and pan masala is sold in two different sachets.
This new sales trick does not violate any rule. Interestingly, when the two packs are mixed, you get a proper substitute for gutkha.
“This is not new. DS Group has been selling Rajnigandha (pan masala) and Tulsi (chewing tobacco) separately for years. And, people mix the two for consumption,” said an industry source.
“With the ban, all other gutkha manufacturers are following the same strategy. It does not affect the companies business much, except the increase in packaging costs.”
If you go to a roadside paanshop and ask for any known gutkha brand, the retailer will give you two packs together, saying “mix the two and you will get your stuff”.
According to retailers in Delhi, companies started supplying the new product mixes, or the replacement for gutkhas, three to four days back.
“We have been selling since then. Companies have also called back earlier gutkha packs from retail stocks,” said two Delhi-based retailers.
According to another industry source, companies are also offering new incentives for selling the new substitute for gutkha. The incentives include cars, bikes and other packages for sales persons to boost sales.
Konkodi Padmanabha, president, Central Arecanut and Cocoa Marketing and Processing Co-operative (Campco) said this will help the companies to sustain, but, the government should take look into the matter that companies do not mix anything harmful with the paanmasala. Margin would be squeezed, and it might result into price increase. “We are not batting for any tobacco product. All we are doing is highlighting which product is actually harmful. Our attempt is to improve awareness,” he said.
At Delhi retail stores, Shikhar branded paan masala and chewing tobacco together are being sold at Rs 3, while, each of the sachets is priced at Re 1. “If you need it, buy at this price,” said retailers. They are also offering 4 units of paan masala and chewing tobacco together at Rs 10. Clearly, the products are being sold at a much higher price than the MRP (maximum retail price).
Last week, the Smokeless Tobacco Association have issued print advertisements saying it is unfair to ban their products when the tobacco content in these is lower than that in cigarettes. The advertisements mentioned that one pouch of gutkha contains 0.2 g of tobacco as against 0.63 g in a single cigarette. The advertisements also blamed “the powerful lobby of cigarette companies” for the ban, which has compelled a number of small gutkha manufacturers to shut shop. Central Arecanut and Cocoa Marketing and Processing Co-operative Ltd and the All India Kattha Factories Association also joined the Smokeless Tobacco Association in the drive. Arecanut or betelnut and kattha are the ingredients in gutkha.
The states that have banned gutkha and paan masala include Delhi, Maharashtra, Gujarat, Goa, Mizoram, Kerala, Madhya Pradesh, Chhattis-garh, Haryana, Punjab, Bihar, Rajasthan, Jharkhand and Sikkim.