Campaigners worried about Japan Tobacco's entry

Progga, a platform of anti-tobacco campaigners, yesterday opposed the government decision that allowed Japan Tobacco to take over the tobacco business of Akij Group.

In a statement, Progga said the entry of Japan Tobacco into Bangladesh will put public health under a threat and hinder the country's aspiration to become a tobacco-free nation.

Japan Tobacco, one of the largest tobacco companies in the world, acquired United Dhaka Tobacco Company, a concern of Akij Group, for $1.47 billion on Monday.

United Dhaka Tobacco is the second biggest player in Bangladesh's market after British American Tobacco.

The Bangladesh Investment Development Authority hailed the deal, saying this is the biggest-ever foreign direct investment in the private sector.

But Progga said, “The move which will eventually put the public health of the country into a larger risk is utterly reprehensible.”

Progga said Japan Tobacco while expanding its market into new territories puts forth the issue of selling so-called 'safe' tobacco vapour or e-cigarettes.

“But in reality, the sole purpose of its business is to create a much larger market for cigarettes.”

The anti-tobacco campaigner said the sale of cigarettes in Japan is rapidly shrinking and JT's business in Japan fell by 5.1 percent.

Japan has introduced a set of stern tobacco-control regulations in recent months, heavily penalising smoking in public, it said. 

The expansion of Japan Tobacco's business into other countries with lax tobacco control and government monitoring is thought to be a move to offset the shrinking sales at home.

“This is why Bangladesh, the world's eighth-largest cigarette market, has become a major target for the company.”

Each year, about 160,000 people of Bangladesh die of diseases caused by tobacco use, according to Progga.