Concerns over valuations, cigarette volumes weigh on ITC

ITC’s June quarter numbers were slightly ahead of Street expectations. Higher-than-expected cigarette volume growth of about one per cent against expectations of a two per cent decline, expansion in margins and good performance of the consumer goods, agricultural and paper businesses helped ITC post robust results. However, the stock fell two per cent to close at Rs 249.45 on Thursday, as against the Sensex’s fall of 0.2 per cent.

Though ITC is expected to post a strong performance this financial year as well, some analysts are worried over the growth in cigarette volumes in 2012-13. Analysts are also divided in terms of stock valuations, which are not cheap at current levels. At nearly 30 times FY13 estimated earnings, the stock is trading at the higher end of its one-year forward price/earnings band of 18-30 times seen in the past five years. It has been seen in the past five years that whenever the stock’s one-year forward PE comes close to the higher band, it tends to underperform/fall thereafter for a couple of months.

However, the current weak macro environment could continue to play in its favour (read: demand for defensives), at least till the ‘risk on’ sentiment gains. V Srinivasan, research analyst at Angel Broking, says, “ITC posted healthy sales and net profit growth. We continue to remain neutral on the stock, as we believe it is fairly priced at current levels.” On the other hand, analysts at Morgan Stanley Research wrote in a post-results note, “ITC results were overall in line with expectations. We reiterate our overweight rating on ITC, given unparalleled visibility for earnings growth, which will likely continue to support valuations, we believe.”

 The difference on valuations perhaps also stems from the fact that analysts are divided on cigarette volume growth, wherein estimates vary between minus three to plus three per cent for FY13. That’s because some believe ITC would raise prices to the extent that it fully passes on the cost increases seen, while others believe partial hikes will be taken. Data from the past 15 years (as compiled by IIFL Research) shows a strong inverse correlation between price increases and ITC’s cigarette volumes. When price rises are in excess of seven per cent, volume growth in the cigarette business tends to be muted and vice versa.

In FY13 so far, analysts say, ITC has already taken a price rise of about 15 per cent, led by an increase in taxes, and some more is in the offing. The silver lining could be the entry of ITC in the sub-65 mm segment. ITC is already testing its products in 64-mm cigarettes in UP and Bihar. Analysts believe this segment could provide support to volumes to the extent of one to two per cent, even as they are monitoring the situation, given the price differential with unorganised cigarettes. Beyond cigarettes, which account for over 80 per cent of ITC’s profits, the break-even of the other fast-moving consumer goods (FMCG) business would act as a key trigger to earnings growth. Also, pick up in its hotels business will remain a key monitorable.

Cigarette manufacturers: FBR accused of introducing complicated FED system

The Federal Board of Revenue (FBR) has introduced a very complex 'slabs system' of the Federal Excise Duty (FED) for the cigarette manufacturers which has only benefited the multinational companies with stagnation in the incidence of taxes ie sales tax/FED on most popular brands of the product. Tax experts told Business Recorder here on Thursday that the multinational companies and the FBR had deliberately implemented a very complicated excise duty system to charge less amount of FED on popular brands of cigarettes. The existing taxation system of the FED is so complicated which only give maximum benefit to the cigarette manufactures.

Prior to budget (2012-2013), World Health Organisation (WHO) has recommended that the FBR should abolish the existing FED charged on the basis of threshold and slabs of the FED for different brands of cigarettes. All brands be treated at par instead of tier system, there should be one system which ensure revenue for the government, help FBR in ensuing compliance and easy to comprehend by all stakeholders. Due to unknown reasons, the FBR fully endorsed the complicated excise regime which facilitates the leading multinational companies.

Tax officials and the cigarette manufacturers have made the excise duty structure in such a manner that ordinary consumer would be totally confused while understating the techniques used for imposition of the excise duty on cigarettes. One of the reasons for implementing a confusing tax system for cigarettes is that some of retired bureaucrats have been hired by multinational companies having connection in government circles and policy makers. Recently, it has been reported that the foreign companies have transferred an amount of over $1 billion aboard on account of profit and dividend during the last fiscal (2011-12).

The repatriation of profit and dividend by foreign companies is again on rise and they are repeatedly transferring their profits and dividends. The foreign investors have repatriated nearly $1.061 billion on account of profit and dividend in fiscal 2012 against $758.3 million in fiscal 2011, depicting an increase of $303 million. On the other hand, multinational companies in the tobacco sector are using different techniques to ensure minimum increase in incidence of taxes on cigarettes. When contacted, a tax official, who have done research on cigarette industry, explained that firstly the existing tax structure should be simple. The present tax structure is complicated and favors to the multinational companies. The incidence of taxes on lower brands should be higher as compared to existing structure.

 The incidence of sales tax and federal excise duty on cigarette has not been increased at par with the globally applicable tax rates on popular brands. Globally, there is a standard that the incidence of tax on cigarettes should be at least 70 percent as the cost of production of this commodity is very low. The incidence of sales tax and FED on the strong brands of cigarette could be termed as stagnant in Pakistan as compared to other countries where incidence of taxes goes up to 70 percent. In Pakistan, if the incidence of sales tax/FED was 42 percent on a specified brand, it has been increased to 45 percent and then 52 percent on annual basis.

However, even the incidence of sales tax/FED has been taken up to 60 percent it is still very low as compared to the 70 percent. The technique used by the multinational companies is to re-adjust the middle slabs with upward adjustment in price. In this way, the incidence of the sales tax and the FED has not been increased, but the price has been increased for popular brands to ensure that the incidence of taxes should remain on the lower side. "Resultantly, the FED has been increased in terms of rupees, but in term of percentage, the incidence of the FED did not increase. Apparently, the excise duty has been increase due to increase in price of cigarettes, whereas the incidence in actual terms of percentage has not proportionately increased, he added.

 If the incidence of taxes is 70 percent on a specific brand, the technique is to ensure incidence of tax of 50 percent or 60 percent on most popular brands. If the market is captured by two popular brands, their actual incidence of taxes would not be increased at par with the global prevailing rates of taxes. This has been done by increasing prices linking with the FED, but the direct incidence of taxes has not increased. Official said that the multinational companies have also adopted another technique to discourage introduction of new brands by local units of Mardan etc. This has been done by fixing a minimum price for launching of a new brand. A new brand cannot be launched unless of until a specific price has been fixed which discourages local units to introduce new brands.

Cigarette seizures quadrupled over two years

Maryland's seizures of contraband tobacco quadrupled between 2010 and 2012, Comptroller Peter Franchot said Wednesday, attributing the increase in part to lax penalties that fail to deter cigarette smugglers from a highly profitable enterprise. Flanked by piles of confiscated tobacco and alcohol products, Franchot announced that his field enforcement agents and other police agencies had seized 325,851 packs of illegally trafficked cigarettes valued at $2 million in the 12 months that ended June 30. The confiscations represent a near-doubling of the previous year's total of 184,498 and are more than four times the total posted in the fiscal year that ended June 30, 2010.

 Franchot credited the increase in part to stepped-up partnerships between his office's enforcement arm and other law enforcement agencies. But he added that the numbers also reflect the money that smugglers can make by transporting cigarettes from low-tax states such as Virginia, where the tax per pack is 30 cents, to Maryland, where the state adds $2 to that cost. The comptroller used the announcement to call on the General Assembly to pass legislation to "dramatically" increase the penalties for smuggling or possessing untaxed tobacco products in Maryland.

 "Criminals are going to repeat this action," Franchot said. "It is too lucrative and the penalties are too small." The Comptroller's office pointed to the case of Stepfon Leroy Wilkins, 49, and Chaniqua R. Rhodes, 40, of Bronx, N.Y., who were arrested on charges of transporting unstamped cigarettes March 5 and April 2 in Princess Anne and again June 4 in Harford County. Charges were dropped in the first case but are pending in the other two. According to the comptroller's office, Franchot proposed legislation during this year's General Assembly session that would have increased the fines for transporting unstamped cigarettes from $50 a carton to a mandatory $150 per carton on the first offense and a mandatory $300 on subsequent offenses.

The bill would have left the maximum jail term for a first offense at two years but increased the limit for subsequent offenses to five years. The legislation passed the House of Delegates 115-12 but stalled in the Senate without a committee vote. Franchot said the legislation "got caught up in politics" in the Senate and was held down "from on top." He declined to say whether he was referring to Senate President Thomas V. Mike Miller, with whom he has long had a contentious relationship. The comptroller vowed to renew his effort to pass the legislation during next year's session. Earl Fowlkes, assistant director of the comptroller's field enforcement division, acknowledged that many cartons of tobacco are sold illegally for every one seized.

 "I would be hesitant to even guess what really gets through or what is sold here in Maryland," he said. "I do believe we are only touching the tip of the iceberg." In addition to announcing the increase in cigarette seizures, Franchot said his office had confiscated $92,000 worth of illegal alcoholic beverages during the year ended June 30 compared with just over $50,000 the year before. Contraband liquor and tobacco is held as evidence as long as needed and then can be sold to license holders at auction. The exception is beer, which is destroyed rather than sold because of its limited shelf life.

WHO urges Philippine senate to block tobacco lobby

The World Health Organization is urging Philippine senators to pass a bill that would jack up cigarette taxes to discourage smoking and raise revenues for universal health care. It says the lawmakers should resist lobbying by the tobacco industry against the bill.

Dr. Soe Nyunt-U said Friday that raising taxes on cigarettes is the "most powerful policy tool" to reduce tobacco use. He said the tobacco industry should not be consulted on public health issues. Philippine Health Undersecretary Paulyn Jean Ubial said 17.3 million Filipinos smoke, about three out of 10 adults.

That is one of Southeast Asia's highest prevalence rates. She says 87,000 Filipinos die yearly of tobacco-related diseases. Chris Nelson, president of PMFTC Inc., which controls over 90 percent of the Philippine cigarette market, was unavailable for comment.

P165-M alternative livelihood project targets tobacco farmers

NTA said the project entails building an AgriPinoy Tobacco Farmers Food Processing and Trading Center in Barangay Nanguneg, Narvacan, Ilocos Sur, as well as a contract growing scheme involving hogs and poultry wherein the government will provide production inputs. “The trading center shall buy and process meat into best-selling products like bagnet, Vigan longaniza, tapa, bacon, barbecue, and similar products for sale in food terminals, groceries, markets, hospitals and offices in Region I, CAR (Cordillera Administrative Region) and Metro Manila,” the agency explained.

NTA will also train tobacco farmers in hog fattening and broiler growing and will provide other forms of technical assistance, including monitoring and supervision. NTA Administrator Edgardo D. Zaragoza said the project is part of his agency’s comprehensive assistance scheme for small tobacco farmers. “It shall also provide an alternative marketing system and business model to increase tobacco farmers’ purchasing and bargaining power, and develop farmers’ capabilities to manage dynamic rural enterprises,” he added.

Mr. Zaragoza said NTA expects the tobacco farming sector of beneficiary areas to earn additional income of up to P8 million in the center’s first year of operations. “This is projected to increase to P 10. 4 million in the second year, P13.6 million in the third year, P17.8 million in the fourth year, and P23.3 million in the fifth year of operation,” he said. The project will serve the whole Ilocos region, as well as Abra, La Union and Pangasinan.

NTA said it plans to expand the initiative’s coverage to other major tobacco growing provinces in the Cagayan Valley. “Considering that [it caters] to basic needs and that food accounts for 46.91% of the personal consumption expenditures of average Filipino families, the [project] will have a sure pre-arranged market, not only locally, but in the future, on a global scale,” said Mr. Zaragoza.

State Regents urge universities, colleges to ban tobacco on campus

The Ohio Board of Regents finalized a resolution July 23 urging the state's colleges and universities to adopt tobacco-free policies on their campuses, which could mean no smoking, chewing or otherwise consuming related products in dormitories, outdoor spaces or any other areas. The resolution, OK'd on a unanimous vote, is symbolic rather than policy setting. The regents have no authority to implement such plans; college and university boards of trustees have to develop and finalize their own tobacco- or smoke-free policies.

But Regents Chairman James Tuschman said he hopes the resolution will mark the start of discussions and debates on individual campuses and the eventual adoption of tobacco prohibitions at the state's 14 four-year universities, two dozen regional campuses, 23 community colleges, the Northeast Ohio Medical University and other higher education locations. "What we're trying to do is modify behavior," Tuschman said.

"This is the way we think is the way to do that. Will we succeed in every respect? I don't know. It's going to be very interesting... how these campuses debate and consider this. They're going to get input from their students, their faculty. There's going to be very serious discussion about this. Our job here is to raise the issues, is to bring forward what we think is a leadership position." Smoking already is banned in many university campus buildings, thanks to the constitutional amendment OK'd by voters several years ago that prohibited smoking in public places. But Smoke Free Ohio law does not cover dorm rooms or open spaces on campuses.

More than half a dozen colleges and universities in the state, including Malone College and Miami University, have implemented extended smoking or tobacco prohibitions to cover such areas. According to statistics released by the regents board July 23, close to 800 campuses nationwide have instituted smoke-free policies. Backers say the bans are needed to make campuses healthier, thus cutting down on future medical costs, and to reduce the number of young people who become regular smokers during their early years in college. They also would like campuses to provide cessation counseling at no cost to employees. "...

Ohio would be far better off if our public universities and community colleges were smoke-free locations," said Chancellor Jim Petro, himself a smoker for 40 years who attributes the habit to the laryngeal cancer that has left him with a raspy voice. A representative of Cleveland Clinic, which supports tobacco-free policies, urged the regents to consider supporting stricter policies against tobacco use, including blocking the hiring smokers or firing employees who refuse to quit. And Regent Patricia Ackerman, who stopped smoking after 36 years, questioned whether Ohio colleges and universities should be prompted to pursue a common date on which they would all implement tobacco bans. "I would hate for us to make a recommendation and leave it to chance on the implementation side," she said.

Minn. raid nets suspected synthetic marijuana

Authorities have seized 20,000 packets of suspected synthetic marijuana from a Duluth head shop as part of a nationwide crackdown. The U.S. Drug Enforcement Administration says Wednesday's raid on the Last Place on Earth also netted two assault rifles, three handguns and cash estimated at about $20,000. Authorities also seized about $2.8 million from the store owner's bank accounts and two vehicles.

Three customers were arrested on outstanding warrants not related to the investigation. Close to two dozen officers participated. Police also raided the Last Place on Earth last September. Calls left for store owner Jim Carlson and his attorney were not returned Thursday. Nationwide, the DEA seized more than $36 million in cash and arrested 91 people in a crackdown against manufacturers, distributors and vendors of synthetic designer drugs.

Another marijuana grow busted Wednesday in Berry Creek

In the wake of Monday's 1,000-plant pot bust nearby, sheriff's deputies made a second marijuana seizure from a Berry Creek residence Wednesday. Police arrested Jin Yik Tan, 45, of San Francisco, for the cultivation and sale of marijuana after executing a search warrant at a residence on Little Ridge Road, according to a press release distributed by the Butte County Sheriff's Office. Police seized 724 marijuana plants with a combined weight of 920 pounds from the residence, according to the press release.

The plants were intended for sale but grown under the guise of California's Compassionate Use Act. The Compassionate Use Act regulates the use and cultivation of marijuana for medical purposes. Tan was arrested on suspicion of cultivating and selling marijuana, and his bail was set at $100,000, according to the press release. On Monday, more than 1,000 marijuana plants were seized by the Butte County Sheriff's Office from a Brush Creek residence, as reported in this newspaper.

In that bust, two San Francisco residents were arrested for the cultivation and sale of marijuana and being armed with handguns and shotguns in the commission of a felony. About 1,212 plants weighing more than three tons were seized from two indoor grow rooms and three outdoor plots. Police estimated their worth to be about $4.8 million. Bail for Rui Hu and Harry Liao, the suspects in that grow, was set at $115,000 each.

Cigarette smoking attitudes represent a cultural upheaval

It was not so long ago that smoking was glamorous. Tobacco companies paid millions of dollars for "product placements" to have the most popular movie stars suck on their brands, although they shifted from Lucky Strikes to Marlboros in recent years. In my younger days, newspaper and magazine advertisements and television commercials had medical doctors saying Camels (my brand, unfiltered, at the time) are good for you. In the 1950s, some participants in the Tour de France, which is full swing right now, were urged to smoke as a way of improving their performance.

You don't see medical doctors or professional bicycle racers pitching cigarettes these days, and paid cigarette placements in movies have subsided, although a few paid placements for Marlboros, along with the sneaky paid plugs forCoca-Cola, McDonalds, etc., still contaminate some movies and television programs. Meanwhile, the innocent victims of cigarette smoke, who used to just suffer in silence as carcinogens and other gunk coated the interiors of their lungs along with the lungs of nearby cigarette addicts, are not as tolerant as they used to be. In past years, if I wrote anything negative about smoking, I'd get blizzards of complaints saying I was against the "freedom" of nicotine junkies. Indeed, I do oppose any restriction on behaviors that do not harm the unwilling — be they smoking or other vices and habits.

If you want to rot your brain with drugs or take other risks, I shall make no objection whatsoever. Smoking, however, often affects others in various ways and, when it comes to the acceptance of smoking, it is amazing how the tide has turned. The reaction to Sunday's column about smoking by parasites on public assistance was pretty much 100 percent in favor of my opposition to such coddling. Even more gratifying was the news a few days later that the state is going to try a trial smoking ban in some state parks because of the cigarette filter litter problem, an issue I raised less than seven weeks ago. "It enrages me to constantly see our government rewarding these people for mistakes," wrote Brad Sauerzopf.

That was in reference to last week's story in The Morning Call about a ban on smoking by the Allentown Housing Authority, which regulates public housing in the city, and my column on Sunday, which raised questions about taxpayers being forced to subsidize people who can afford smoking and other pernicious luxuries. "I wonder how much we could save as a country if all the help we gave was closely monitored and how much was spent on cigarettes, booze and tattoos," Sauerzopf said. (Last week's stories in the paper and online were accompanied by photographs of tattooed young men protesting the ban.) "I was trying to understand how a guy adorned with hundreds of [dollars] worth of tattoos and smoking $6-a-pack butts felt he had the right to complain about no-smoking regulations in the housing that I (and you) pay for," said Carl Poehler.

Another win for non-smokers

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Pamela and Gord Weitzel are breathing a smoke-free sigh of relief after a long, stressful battle against a chain-smoking neighbour. The Langley couple are claiming victory against second hand smoke wafting into their home for the past three years. The Weitzels dropped their BC Human Rights complaint against their chain-smoking neighbour after he agreed to install an expensive exhaust fan in his suite and now their strata complex has voted for a “no smoking allowed” bylaw last month. “Non-smokers rights count in this millennium,” said Gord.

He is ecstatic that he and his wife can stay in their ground level condo. Also, his chain-smoking neighbour passed away in April. He was only 68, said Weitzel. Gord and Pam both suffer from health disorders and when they moved into Willow Park Estates, outfitted the doorways with ramps and expensive grab bars. They like their condo’s nearness to Willowbrook Mall and didn’t want to move. They provided their strata with doctors’ notes indicating that the smoking was impacting their breathing.

The strata council said at the time it didn’t have the power to do anything. The Weitzels decided to file a complaint with the BC Human Rights Tribunal in fall 2010. The Tribunal accepted the complaint and served the strata notice. It was only a couple of months ago that the Tribunal awarded a Langley couple $8,000 in compensation for having to live with second-hand smoke at their 53 Avenue condo complex. The tribunal ruled that the strata pay the couple for “injury to their dignity and self respect” and for costs for an air conditioner and naturopathic treatments after having smoke waft into their condo from smokers living below them.

Melanie and Matthew McDaniel had filed a complaint to their strata about cigarette smoke coming into their unit from smoker’s below. Melanie said she is severely allergic and was six months pregnant at the time. She pointed out she had more rights at work than in her own home. It does seem the tables are turning on smokers’ rights. There are fewer and fewer places smokers can light up. Also a recent study released said fewer and fewer teens are taking up the cancerous habit. This year, Metro Vancouver Parks banned smoking in all 33 of its regional parks and greenways, including Derby Reach and Brae Island in Langley. B.C. bans smoking in all indoor public spaces, near any doorways or windows and at bus stops. In Vancouver, there is no smoking on restaurant patios as well.

Waverers urged to keep smoking ban

A CANCER Council official has joined Lord Mayor Lorraine Wearne in urging all councillors to stand firm on the ban on smoking in outdoor dining areas. They are concerned that some councillors have changed their stance on the ban following pressure from restaurateurs and a Land and Environment Court ruling that criticised council officers' application of the ban. Cancer Council western Sydney region manager Rory Alcock congratulated the council in sticking to the ban by passing the revised policy six votes to five last week.

But he was concerned that the matter would go before councillors again next Monday after wavering councillors put in a rescission motion to reverse the decision. Mr Alcock said it had been two years since the policy was first voted in and the community was ready to move forward and accept these changes. "We are pleased to see that the public's health has been put first by the council with this result and we applaud them for showing determination on this issue, but we are urging Parramatta Council to continue to show consistency and vote against this rescission motion and put this matter to rest once and for all," Mr Alcock said.

Councillors Tony Issa, Paul Garrard, Scott Lloyd, John Chedid and Andrew Wilson want the revised policy to be deferred so they can better understand the court ruling. Cr Wearne, who blasted the wavering councillors last week, told The Parramatta Advertiser that she "did not know what those councillors think they can achieve" by the rescission motion, given that anti-smoking councillors Michael McDermott, Prabir Maitra and Paul Barber were away last week.

Tobacco deliveries surpass target

Tobacco deliveries for the 2012 auction season have surpassed the revised target of 133 million kgs two weeks before the close of the marketing period on July 27. The initial output target of 180 million kgs was revised downwards early this year following a decline in the planted hectarage caused by lack of funding. Latest statistics from the Tobacco Industry and Marketing Board (TIMB) indicate that as of Thursday last week, deliveries had reached 134 million kgs generating $496,3 million in the process.

The crop was sold at an average price of $3,70 per kg. The $496,3 million earned so far indicated a 45% increase from $343 million during the same period last year. Close to 1,7 million bales had so far been sold compared to 1,6 million sold during the same period last year. To date, 77 218 bales have been rejected compared to 111 219 bales discarded at the same time last year. TIMB chief executive officer Andrew Matibiri said given this year’s performance, the board was set to revise next year’s target upwards.

“This shows that tobacco is still coming through. We have an idea on how much we are to revise upwards as the tobacco season ends on July 27 2012,” Matibiri said. In a circular to farmers, TIMB said the flue-cured auction tobacco clean-up sale would be held on Wednesday July 22. “Depending on the volume of deliveries, the clean-up sale may be continued for more than one day until all delivered tobacco has been sold,” reads part of the circular.

“Because of the volumes that are still being received, contract sales will continue until further notice. “Nonetheless, contracted growers are advised to finalise the grading and marketing of their tobacco.”

Eliminating onscreen smoking could help cut teen tobacco use by 18 pc

Killing the "cool" factor of cigarettes and increasing the classification rating for films depicting smoking would have a dramatic impact on youth tobacco usage, suggest researchers. Stubbing out smoking in films aimed at teenagers could help slash the rate of tobacco use by up to 18 per cent, according to a study published in the journal Pediatrics. Cinematic smoking is a potent risk factor for teenagers, with every 500 smoking shots increasing the likelihood of trying a cigarette by up to 49 per cent.

Top grossing films such as 'Iron Man', 'Mission Impossible 2', 'Men In Black' and '101 Dalmatians' were among the hits watched by the 6500 children in the study. "Hollywood plays a role by making smoking look really good," the Daily Telegraph quoted lead researcher James Sargent, of the Norris Cotton Cancer Centre, as saying. "By eliminating smoking in movies marketed to youth (it would) lower adolescent smoking by as much as one-fifth," he noted.

Though researchers urged smoke-heavy flicks be given a higher classification rating, they say parents also needed to help steer teens away from danger. "Authoritative parents" who are "effective in monitoring their children" have a strong track record in lowering tobacco use, the study found. "It is also important to motivate and assist parents in restricting access to these movies, which would further reduce adolescent exposure to onscreen smoking," the researchers wrote.

AP too wants hookah parlours banned

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Taking a cue from the Chandigarh police, Andhra Pradesh is planning to ban hookah parlours which have sprung up in large numbers across Hyderabad. The city police had recently launched a major crackdown against pubs and hookah bars and unearthed several violations by their owners including allowing underage drinking and use of narcotics.

 “Some of these businesses were found to be crossing their limits by allowing schoolchildren in uniforms inside their premises. There is a demand from the general public to impose restrictions on such bars,” the city police commissioner Anurag Sharma said. A team of Hyderabad police would visit different cities, including Chandigarh, to study the ban on Hookah parlours, the top cop said.

“I am sending a team to Chandigarh, Ahmedabad and Bangalore to study the ban on hookah bars there. I would like to know the rules under which the ban was enforce,” he said. There is a growing trend among the youngsters in the city, particularly minors, to chill out at the swanky hookah parlours.

Arizona study disputes benefits of medical iijuana

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A new University of Arizona study shows little or no evidence that medical marijuana is an effective treatment for anxiety, migraines, depression and post-traumatic stress disorder, a finding that could hinder efforts to expand the allowable uses for the drug in the state, The Arizona Republic reports.

 The researchers, working on behalf of the state Department of Health Services that oversees the state's medical-marijuana program, reviewed dozens of scientific studies related to marijuana use for the four medical conditions and determined that most of the research was of little value in weighing the medicinal risks and benefits. Arizona health officials and medical-marijuana advocates agree the lack of scientific research is in large part because of restrictions on research of some controlled substances, the newspaper reports.

The study could affect efforts by medical-marijuana supporters to expand the state's program to include the treatment of anxiety, migraines, depression and PTSD. "The key question for us is: Do the benefits outweigh the risks?" says Will Humble, state health director. "And there's just not that much research in this area to help form our policy decisions." Humble will decide this month whether to expand the list of conditions eligible for medical-marijuana therapy.

He has also listened to personal testimony and reviewed documents submitted by people who want to expand the medical-marijuana program. More than 31,000 Arizonans currently participate in the medical-marijuana program, citing conditions ranging from chronic pain to cancer and hepatitis C, according to the newspaper. Humble said the program would expand by as many as 15,000 if post-traumatic stress alone was added as a qualifying condition.

What's the etiquette with electronic cigarettes?

An e-cigarette led to confusion on the M6. But what are the rules of smoking fake fags? A misunderstanding over an electronic cigarette caused a major terrorist alert on the M6 yesterday. The incident showed what a novelty e-cigarettes are to many people and how easily confusion can develop. But the "fake cigarette" also raises questions of etiquette.

Even before the smoking ban, a restaurant-goer lighting up would annoy fellow diners. Since the ban, such behaviour would cause consternation among customers and lead the owner to fear legal action. Smoking an e-cigarette, however, is legal in public places. Although it contains nicotine, there is no burning and only odourless steam is produced. The health advantages of e-cigarettes over tobacco smoking have attracted celebrities including Leonardo di Caprio and Kate Moss.

OPSU Goes Tobacco Free

Oklahoma Panhandle State Univ. has banned all tobacco use throughout the campus and all auxiliary property, such as the school farm and the Guymon Classroom. Outdoor signs have already been installed at all campus entrances. In addition to the signs, the campus community will be educated about Gov.
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Mary Fallin's Executive Order 2012-01 through announcements at student, faculty, and staff meetings and everyone will also be provided with printed material. No smoking or any other tobacco use will be allowed on any OPSU property. During the fall semester, only warnings will be issued. Beginning with the spring semester in January, tickets, similar to campus parking citations, will be issued for flagrant violations. OPSU's human resources staff will offer resources to those who wish to quit using tobacco.

Tobacco production lower than estimated

THE Tobacco Control Commission (TCC) has warned that the amount of tobacco produced by the country this year is likely to be lower than earlier projected. Initial estimates showed that Malawi had this year produced 165 million kilogrammes of all types of tobacco, a figure that was a sharp drop from the 210 million kilogramme of the leaf realised in the previous year.

 However, TCC C h i e f Executive Bruce Munthali told The Daily Times in Lilongwe that following observation on the market, indications are now clear that production figures are likely to be lower than projected. "We thought we still had a lot of tobacco from the farmers but there seems to be less than we anticipated," said Munthali. "We wil l come up with actual figures very shortly after quantifying the tobacco remaining in the field," he said. Munthali said, however, the market has so far stabilized in terms of prices.

 He o b s e r v e d t h a t t h e devaluation of kwacha in April has helped to curb tobacco smuggling to cross border markers as few cases are being reported now Last year's all year market average price was US$0.97 per kilogramme although the buyers were exporting at an average price of US$3.39 per kilogram, according to the TCC figures. This year the market started with poor prices but improved tremendously following the devaluation of the kwacha, with figures for last week showing that buyers were off e r i n g an average of US$2.13 per kilogrammes for all times of tobacco. Last year, tobacco farmers sold on the auction floors about 210 mi l l ion kilogrammes , earning the country US$258 million.

‘One marijuana joint a day is as bad as 20 cigarettes’

Maybe you’ve heard that smoking marijuana is not as bad for your health as smoking tobacco cigarettes. Nevertheless, experts warn that smoking marijuana increases the chances of developing lung cancer by as much as an entire packet of 20 tobacco cigarettes, reports Sade Oguntola. While new research continues to reveal the multiple health consequences of smoking cannabis, marijuana or hemp, it is alarming that there is still lack of public awareness on how harmful this drug can be.

Many people, particularly the young ones who smoke marijuana are unaware that each wrap of marijuana they smoke increases their chances of developing lung cancer by as much as an entire packet of 20 tobacco cigarettes. Marijuana smoking involves inhaling vapours released by heating the flowers and subtending leaves of the cannabis plants, known as marijuana. It is one of the most widely-used recreational drugs in the world. A sizeable number of people have tried it, thinking that smoking marijuana is somehow a safe pastime.

 In Lagos, for instance, a study reported in the European Child and Adolescent Psychiatry that between 4.0 and 4.8 per cent of Lagosians use addictive substances such as, marijuana, heroin, and cocaine. Moreover, the use of marijuana cuts across all social sectors, as evidenced by a survey of Psychoactive substance use/abuse among students in Igbinedion University, Okada which found that about 2.8 per cent of the students smoke marijuana. This was reported in the 2011 edition of the Nigerian Journal of General Practice. The increasing use of marijuana is not restricted to developing countries like Nigeria alone. In fact, in the United Kingdom, marijuana is used by more than a third of people under 24, but 88 per cent believe it is less dangerous than tobacco.

 However, according to the British Lung Foundation (BLF), smoking one marijuana a day for a year increases the risk of lung cancer by eight per cent. By comparison, smoking 20 tobacco cigarettes a day for a year increases the risk of lung cancer by seven per cent. Why is marijuana more dangerous than tobacco? BLF argued that the way marijuana is smoked compared to tobacco (such as the tendency not to use filters; and deeper, longer inhaling) makes the risk of developing lung cancer from smoking a single marijuana daily a day despite similar carbon monoxide concentrations in the smoke”.

Also, the reports stated that people often mix marijuana with tobacco. There is strong evidence that smoking tobacco causes lung cancer and chronic lung disease. This makes it difficult to isolate whether health problems are specifically caused by marijuana or tobacco. The report highlighted that many of the same cancer-causing compounds in cigarettes are also present in marijuana, and that the way marijuana is smoked may mean that the body retains more of these harmful products than when smoking a similar quantity of tobacco. The average puff on a marijuana is two-thirds larger and is held four times longer than the average puff on a tobacco cigarette. As a result, someone smoking a marijuana inhales four times as much tar as from a tobacco cigarette, and five times as much carbon monoxide.

 Although, the Canadian Medical Association Journal in 2009 indicated that smoking both tobacco and marijuana increase the risk of respiratory symptoms and Chronic Obstructive Pulmonary Disease (COPD), BLF said that a single joint is equal to 10 cigarettes in terms of lung damage and 20 cigarettes in terms of lung cancer risk. Chronic bronchitis and emphysema, the two disorders that constitute COPD, often occur in long-time tobacco smokers. Symptoms — mainly coughing and shortness of breath — don’t usually develop till people are in their 50s or 60s. In chronic bronchitis, inflammation damages the bronchi, or air passages, over time. In emphysema, the damage occurs in the walls of the alveoli (tiny sacs in which gases are exchanged), reducing the lung’s capacity to exchange oxygen and carbon dioxide.

Anti Tobacco Crusaders Want Tobacco Manufacture Banned

Anti Tobacco crusaders have asked government to ban the manufacture of tobacco in Uganda. The group under the Center for Tobacco Control in Africa while meeting in Kampala said that tobacco benefits only the tobacco companies and its money does not help the people.

The administrator of the Center for Tobacco Control in Africa, Dr. Prosy Mugyenyi said that all the money got from tobacco companies end up treating people who get cancer caused by tobacco. He said that tobacco farmers should be encouraged to grow other alternative crops and abandon tobacco growing because it affects their lives.

Women are New targets of Tobacco Firms

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Reports are confirming a big risk to women from the Cigarette companies as they found them the most sensitive target of the tobacco firms to increase their sales. Officials have cleared in their statements that an alarming hike has been noticed in the number of female smokers recently, which they believe is an important target today of the tobacco companies to keep their market equally strong.

 They said that the women and girls are being lured into this habit with the `superslim' branding images. In order to discuss the serious issue, a conference was arranged by the Irish Cancer Society in Dublin yesterday in which the concerned authority cleared its fears and said that one in three Irish women is today a smoker. Concerns in the conference rose higher when the authority cleared the fact that how tobacco companies are targeting more women.

They said that the tobacco industry is primarily attracting more women with their brands that appeal specifically ladies. Superslim cigarettes are one in the list. Some other strategies that are being followed by such companies are: lighted packaging, feminine colors and names etc. Ms. Kathleen O'Meara of the ICS said: "Big tobacco firms are misleading women with products which link smoking to femininity and sophistication".