ITC closes 5.44% up on reports plan to ban sale of loose cigarettes may be shelved

The ITC stock was trading higher on media reports that the government's plan to ban sale of loose cigarettes is facing resistance from within the BJP and outside circles.

At 12:45 pm, the stock rose more than 5.29 per cent to Rs 382.20 on the BSE. The stock which is regarded as a defensive bet closed 5.44 per cent higher at Rs 382.75 on the BSE.

News reports say objections by some MPs, including some Union ministers, and farmers associations may put the health ministry's proposal to ban sale of loose cigarettes on hold.

At a meeting called by Union Minister Venkaiah Naidu, Health Minister J P Nadda assured the MPs that he will look into all issues pertaining to tobacco and arecanut growers and industry before taking any policy decision.

Union Ministers besides MPs from two major tobacco- producing states Andhra Pradesh and Karnataka, including Ananth Kumar and Nirmala Sitharaman and Mohanbhai Kundaria, were present at the meeting where Nadda was told to address all concerns and not to take any hasty step.

The Parliamentarians were of the view that without providing suitable alternatives to cash crops in tobacco and arecanut-growing areas, farmers should not be penalised by introducing drastic regulatory measures, sources said.