Mumbai: Tobacco law changes would devastate 8 lakh city retailers

Small retailers protest against the proposed amendments, at Parel on Thursday

The amendments to the COTPA (Cigarettes and Other Tobacco Products Act) Bill 2020 will devastate Mumbai's nearly 8 lakh retailers and their families, the Federation of Retailer Association of India's (FRAI) city chapter has claimed.

The FRAI has urged Prime Minister Narendra Modi to intervene and order a recall of the proposed "undemocratic amendments". The federation, a representative body of about 4 crore micro, small and medium retailers across the country, said around 7.5-8 lakh micro and petty retailers are expected to lose substantial incomes in Mumbai alone.

The FRAI's Mumbai chapter also appealed to Chief Minister Uddhav Thackeray to "save the interests and livelihoods" of these micro retailers and their 25 lakh dependants in the city and "save them from potential harassment".

Make barely Rs 15,000 per month
In a press statement, the FRAI said: "FRAI members sustain by selling goods of daily necessities, like biscuits, soft drinks, mineral water, cigarettes, bidi, paan, etc, in the neighbourhood. Each individual makes a profit of Rs 15,000 per month, which is barely adequate to feed their family."

"The Coronavirus-triggered lockdowns and economic destruction has further damaged the financial condition of small retailers and any further adverse policy that destabilises their business activity will be devastating," it added. Not just the 8 lakh retailers in the city, but their family and dependents would end up suffering too, said Nandkumar Hegishte, a 58-year-old retailer from Ratnagiri and member of FRAI's Maharashtra chapter.

The amendments proposed by the Union Ministry of Health prohibit the sale of tobacco products to people below 21 years, put control on in-shop advertising and promotion, etc. FRAI said these changes "seemed to be aimed at destroying the business for the smaller retailers without impacting large retailers."

Hegishte said increasing the age to 21 would do more harm than good since it's easier to recognise an 18-year-old. "We might, by mistake, end up selling tobacco products to someone who is between 19 and 21 years, because it is tough to figure out their age group by looks. In that case, how will we pay the fine of Rs 1 lakh?"

25 lakh
Approx no. of dependants of micro, small retailers in the city