Maharashtra bans sale of tobacco products in FMCG outlets

In a significant set back to tobacco as well as FMCG companies, the Maharashtra government announced a ban on the sale of tobacco products at shops that sell chocolates, chips and other edible items, which constitute the goods of common use. Similarly, cigarette and pan kiosks would now have to stop selling FMCG goods.
 

The move aims to reduce the addiction of tobacco products amongst youngsters as stated by the Food and Drug Administration officials, has come after the Central government directed the states to enforce a ban on the sale of tobacco products at shops that sell FMCGs. Maharashtra is the first state to enforce the ban.

The shops and outlets selling tobacco products as well as FMCG products will be subject to penal action including cancellation of their licence, imprisonment of up to six months and a fine. The FDA also extended the ban on scented supari till July 2018.

FMCG conglomerate ITC traded in the red territory in the intraday trade on Thursday. The stock hit an intraday high of Rs. 282 per share and an intraday low of Rs. 279.30 per share on BSE. At 12:48 hours IST, the stock was trading at Rs. 280 per share, down by 0.53 per cent on BSE. Another FMCG major, Britannia Industries also traded in red territory on Thursday. At 12:48 hours IST, the stock was trading at Rs. 4,636 per share, lower by 1.40 per cent on BSE.