The Directorate of Advertising and Visual Publicity (DAVP) has increased advertisement rates by 24 per cent across the board. The proposal was mooted by Union Information and Broadcasting Minister PR Dasmunsi after several newspapers made representations for hike in ad rates as the cost of expenditure and newsprint have increased manifold. The proposal has been cleared by the Finance Ministry and has come into effect from September 1, 2008.
In a statement, INS President Hormusji N Cama, said, “As of yesterday, DAVP announced the increase of 24 per cent effective from September 1, 2008, but that’s not enough. They are also going to set up a rate structure committee. I have my own reservations, because a lot of smaller and medium newspapers depend on Government advertisers, and some large newspapers take away a large chunk of these advertisers. When the rate goes up, who is the main beneficiary? It is not the smaller and medium newspapers, but the larger newspapers.”
“So, although we all think we have done a great job by getting an increase, unless we get a proportional increase in the DAVP budget that is going to happen due to this ad hoc increase, the smaller newspapers are going to be hit. Their volumes will go down and the larger newspapers will benefit all the way,” Cama pointed out.
DAVP is the key nodal agency of the Indian Government advertising, including public sector undertakings and autonomous bodies. As per the advertisement policy of 2006, empanelled newspapers get Government advertisements as per their circulation figures for three years.