On Friday, cigarette makers including part owned by British American Tobacco, have suspended production on what they said was ambiguity in the government’s new health warning rules for packs.

From Friday, the rules which mandated 85 percent of a cigarette pack’s surface to be covered in health warnings, up from 20 percent have been kicked in after being delayed for a year.

According to The Tobacco Institute of India (TII), the industry was concerned over potential violation of health warning rules by continuing production and added that the production halt would cost the industry $53 million a day.

Last year, India was forced to delay implementation of stringent pack warning rules on account of parliamentary panel that sought time for assessing how the industry would be impacted.

Later, the health ministry has decided to implement the rules from April this year, however the panel has issued a report last month which says that the size of warnings should be reduced to 50 percent in the interest of the industry and tobacco farmers.

Read EquityPandit’s Technical Analysis of Indian Stock Market