Smoking Bidis Costs India Rs 80,000 Crore a Year: Study

As of December 31, 2016, India employed 400 full-time members in its National Tobacco Control Programme (NTCP), and spent Rs 40 crore for them and their work in 2015.

Compare this to the Rs 80,000 crore (approx.) it costs India in ill health and early deaths in just 2017 – all due to bidi-smoking. This estimate comes from a new study by Rijo M. John at the Centre for Public Policy Research, Kochi. It was published in the journal Tobacco Control.

“Bidi-smoking is a severe threat to the public health and national exchequer,” John said. He regretted “taxation as a tool to regulate bidi smoking has been highly underutilised in India” even though there’s “overwhelming evidence” that this method can be effective.

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A common belief is that “political clout” has been blocking higher taxes on bidis.

“There is certainly an economic rationale for increased taxation on bidi,” John continued, referring to his study. “Allowing bidi consumption to continue unhindered would make income distribution even more regressive, as the poor will continue to bear a disproportionately large share of economic costs from bidi smoking due to their higher bidi-smoking prevalence.”

So his ask: that the “tax burden of about 22% on bidi be increased to the WHO-recommended rate of 75%”.

He calculated the cost of smoking bidis using national and international data sources. The study ultimately estimated the direct and indirect costs of treating the resulting afflictions and early deaths among 30-69 year-olds in 2017.

The costs included the direct medical cost of treating diseases, and the indirect morbidity and mortality costs of premature deaths.

Direct costs include diagnostic tests, drugs, doctors’ and hospital fees and transportation. Together, they make up 20.9% (Rs 16,870 crore) of the total cost.

The remaining ~79% – indirect costs – includes accommodation for relatives and carers and loss of household income.

Also read: Why India Ignores A $16-Billion Smoking-Led Health Crisis

“The total annual economic costs of bidi smoking amounts to approximately 0.5% of India’s GDP,” John explained, “while the excise tax revenue from bidi is only half a percent of its economic costs.”

As a result, the direct cost incurred due to smoking bidis amounts to 2.24% of India’s total healthcare expenditure.

And because it’s predominantly the poor who smoke bidis, these costs can push them deeper into poverty.

According to official data, bidis account for 81% of the tobacco smoked in the country. There are 72 million regular bidi-smokers over the age of 15.

“Bidis outsell cigarettes in the ratio 4.3:1 in India, as per the new Global Adult Tobacco Survey in 2016,” John said.

“In most states, bidi-smoking prevalence continue to be higher than cigarette-smoking prevalence, but in a few states – including Kerala – the opposite is the case.”

Many bidi-smokers wrongly believe that bidis are less harmful than cigarettes. Bidis are a causal risk factor for many types of cancers. They include those of the mouth, pharynx, larynx, oesophagus and lungs. Bidis also increase the risk of chronic bronchitis, tuberculosis and respiratory diseases.

John and co.’s study also highlighted the following less-known problems: