PM Modi's recent demonetization might just be making the country's lungs more healthy. Among the many things demonetization and the ensuing cash crunch has impacted, the sale of cigarettes has suffered a major loss in the days following the ban on Rs 500 and 1000 notes by the Modi government. 

Source: b'Representational Image | Source: Reuters\xc2\xa0'

According a report by Times of India, vendors and traders claim the sale of cigarettes has suffered an almost 40 percent decrease due to lack of cash, especially change. 

Head of a research firm, Daljit Singh Kohli, tells Financial Express

“Due to the prevailing cash crunch situation, smokers are reducing cigarette consumption. People, who can control smoking, are already smoking fewer cigarettes per day for saving money to buy essential items." 

Shopkeepers, who are not receiving any credit on cigarettes from manufacturers, are thus failing to extend credit to even regular customers who are cashless, which is adding a further dip to the already low sales. 

A report in Money Control says that the tobacco industries is one of the worst hit by the cash-crunch, and that retail sales have gone down b 30-35 percent post demonetization.  

Source: b'A local cigarette shop in Kolkata | Source: Reuters\xc2\xa0'

India in recent years has upped its anti-tobacco consumption campaigns. The Modi government has taken a stiff stance against the proliferation of  the tobacco industry in India. 

Recently, the commerce Ministry has been demanding a blanket ban on all foreign direct investment in the tobacco sector, the Hindu reported.

The size of the picture of deteriorating organs due to to tobacco printed on cigarette boxes, was also increased to have a greater impact on smokers as to the adverse affects of smoking.

Feature Image Source: Reuters