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Tag: India

  • Philip Morris Supports India’s Crackdown on Illicits

    Philip Morris Supports India’s Crackdown on Illicits

    On World Anti-Counterfeiting Day, Philip Morris International’s (PMI) India affiliate, IPM India, reinforced its commitment to combat illicit tobacco trade, protect government revenue, and uphold product integrity. The pledge aligns with India’s rollout of pack-level track and trace (T&T) technology, aimed at identifying and curbing counterfeit tobacco products.

    India, the fourth-largest illegal cigarette market globally, sees smuggled cigarettes make up 25% of its domestic market, according to PMI estimates. The company emphasized the critical need for stronger enforcement and collaboration to address the issue, which undermines public health, economic stability, and national security.

    Navaneel Kar, managing director of IPM India, praised the government’s T&T initiative, stating it will enhance transparency and enforcement. PMI says it has implemented T&T systems in over 140 countries, including the EU and GCC states, with positive outcomes in reducing illicit trade.

    Rodney Van Dooren, PMI’s Head of Illicit Trade Prevention for Asia Pacific, called for regional cooperation, noting India’s leadership role and growing influence in tackling counterfeit goods.

  • Bangladesh’s Unchanged Tobacco Taxes Draw Criticism 

    Bangladesh’s Unchanged Tobacco Taxes Draw Criticism 

    Bangladesh’s interim government’s proposed national budget for Fiscal Year 2025-26 (July 2025-June 2026) has drawn criticism from anti-tobacco activists for keeping cigarette prices and taxes unchanged across all tiers. Finance Adviser Dr. Salehuddin Ahmed presented the proposed budget, but activists suggest the decision will deprive the government of at least Tk20,000 crore ($2.4 billion) in additional revenue while making cigarettes more accessible to young smokers.

    Activists urge the government to increase cigarette prices across all tiers, particularly by merging the low and medium tiers—which account for 80% of the market—into a single category with a minimum retail price (MRP) of Tk90 ($1.08) for 10 sticks.

    The budget also leaves bidi prices unchanged for the sixth consecutive time, with supplementary duty remaining static for the 10th straight year. Similarly, taxes on smokeless tobacco products such as jarda and gul remain unaltered, sparking concerns among health advocates.

    While the budget raises the advance tax on cigarette manufacturers from 3% to 5% and increases supplementary duty on imported cigarette paper from 150% to 300%, activists argue these measures fall short of ensuring meaningful public health protection.

  • India Faces EU Sustainability Hurdles

    India Faces EU Sustainability Hurdles

    India has become the world’s largest tobacco exporter, with shipments worth $1.2 billion in FY 2023-24—a 19.46% increase from the previous year. Union Commerce Minister Piyush Goyal announced that tobacco exports, including unmanufactured tobacco and processed products, reached a record-breaking ₹12,005.8 crore ($1.5 billion). However, the industry faces mounting challenges as stringent European Union (EU) sustainability standards loom.

    The EU, a key importer of Indian tobacco, is set to enforce regulations under frameworks like the European Green Deal and Carbon Border Adjustment Mechanism by 2026, with full implementation by 2030. These measures aim to ensure sustainability, climate neutrality, and transparency. Experts warn that nearly 50-60% of India’s farm exports, including tobacco, could be impacted due to gaps in technology, training, and resources needed to comply with the EU’s rigorous standards.

    Indian farmers, many of whom are unaware of the impending changes, rely heavily on guidance from the Tobacco Board and the Central Tobacco Research Institute (CTRI). While efforts like promoting organic farming and reducing pesticide use are underway, the industry has yet to develop a comprehensive action plan. Tobacco Board Chairman Yashwant Kumar Chidipothu stresses the need for a gradual transition to meet global standards without jeopardizing the livelihoods of millions of farmers dependent on tobacco cultivation.

    As Europe tightens regulations, experts warn of potential domestic market disruptions, including declining export prices and increased local tobacco consumption. With time running out, the industry must navigate a delicate balance between sustainability and economic survival to retain its position in the global market.

  • India: Over 1,500 Kg of Product Seized in 2024 Virudhunagar Raids

    India: Over 1,500 Kg of Product Seized in 2024 Virudhunagar Raids

    Authorities seized 1,531 kilograms of banned tobacco products in 2024 across 403 shops and 44 vehicles in Virudhunagar, India, imposing fines totaling ₹1.06 crore (US$ 12,340) on offenders. The operations were part of the state government’s initiative to eliminate banned tobacco sales, particularly near schools and colleges.

    Joint teams from the Food and Safety Department and the police conducted 831 raids throughout the year. Offending shops were sealed, and vehicles transporting illicit tobacco were confiscated. In early 2025, additional raids led to the seizure of 16.275 kilograms of banned products from six shops in just four days.

    District Collector VP Jeyaseelan affirmed that strict measures will continue against those violating the ban, underscoring the administration’s commitment to public health and safety. The crackdown aims to curb access to harmful products and deter illegal sales in sensitive areas.

  • India: BJP Leader Condemns Exploitative Prices

    India: BJP Leader Condemns Exploitative Prices

    BJP Jogulamba Gadwal District (India) President S. Ramachandra Reddy has criticized Alliance One International for pricing that he calls exploitative compared to nearby ITC, which he says offers fair pricing. Reddy visited Alliance One’s procurement center near Alampur X Road Market Yard following farmer complaints. Farmers reported deductions of ₹8,000 to ₹10,000 (US$ 93.13–116.41) per quintal under the pretext of moisture content, despite an agreed price of ₹15,500 per quintal.

    Reddy condemned the unfair practices, noting the challenges farmers already face, including rising labor costs, poor yields, and delays in Rythu Bandhu benefits. He warned Alliance One to cease unjust deductions and ensure consistent daily procurement of crops, pledging BJP’s support for farmers if the exploitation persists.

    The visit was attended by several district representatives and party leaders, reflecting a collective effort to address the grievances of tobacco farmers and ensure fair treatment in the procurement process.

  • ITC Misses Profit Estimate

    ITC Misses Profit Estimate

    ITC’s profit rose 3 percent to INR50.78 billion ($604.2 million) in the quarter that ended Sept. 30, missing estimates of INR51.14 billion, reports Reuters. The company cited subdued demand conditions, unusually heavy rains in parts of India and a sharp escalation in certain input costs, among other factors.

    Higher prices of raw materials, such as tobacco leaf and crude oil, also weighed on the consumer goods sector’s earnings for the July-September period. The increase in leaf tobacco prices was partly mitigated through improved mix, calibrated pricing and strategic cost management, according to ITC.

    In the cigarette business, net segment revenue was up 7.3 percent. ITC said the business continues to counter illicit trade and make strategic portfolio and market interventions “with focus on competitive belts to reinforce market standing.”

    The company also noted in a statement that recent stability in cigarette taxes, backed by deterrent enforcement, enabled volume recovery for the legal cigarette industry from illicit trade, leading to higher demand for Indian tobaccos and bolstering revenue to the exchequer from the tobacco sector.

  • India Wants Streaming Anti-Tobacco Messages

    India Wants Streaming Anti-Tobacco Messages

    Photo: Gorodenkoff

    India’s central government wants to require over-the-top (OTT) platforms to display non-skippable anti-tobacco health spots for at least 30 seconds when users begin streaming content, reports The Economic Times.

    According to the draft guidelines, all films released on or after Sept. 1, 2023, must show anti-tobacco health spots of at least 30 seconds at the beginning and middle of the movie. Additionally, these films must display prominent static anti-tobacco health warnings at the bottom of the screen during scenes that depict tobacco use.

    The proposed legislation updates the anti-tobacco regulations issued by the ministry in May 2022.

    “Essentially, streaming platforms will now be required to show these health spots and disclaimers not only at the beginning and middle of programs but also as soon as the platform is opened,” an official source told the Economic Times. “Currently, the health spots and disclaimers are not displayed immediately upon opening the platform.”

    India became the first country in May 2022 to make it mandatory for OTT platforms to show anti-tobacco warnings and disclaimers similar to those seen in theatrical releases and TV programs, prioritizing public health.

    The OTT rules of 2023 took effect on Sept. 1, 2023.

  • Cigarette Business Boosts ITC Performance

    Cigarette Business Boosts ITC Performance

    Photo: sdx15

    Higher cigarettes sales boosted ITC’s overall revenue from operations 7.2 percent to INR182.20 billion ($2.17 billion).

    Net cigarette segment revenue grew 7 percent and segment profit before interest and tax was up 6.5 percent year on year.

    In a statement, ITC said it fortified its product portfolio through “innovation and democratizing premiumization across segments backed by superior on-ground execution.”

    The company reported strong performance in its differentiated variants and premium segment and  sequential improvement in its value segment.

    It said it mitigated the sharp escalation in costs of leaf tobacco and certain other inputs through improved mix, strategic cost management and calibrated pricing.

    The company attributed the strong performance of its cigarette business in part to the India’s stable tax environment.

    “ s seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enables volume recovery for the legal cigarette industry from illicit trade leading to higher demand for Indian tobaccos and bolstering revenue to the exchequer from the tobacco sector,”  the company wrote.

  • Shareholders Approve Hotels Demerger

    Shareholders Approve Hotels Demerger

    Timon Schneider/Wirestock

    Shareholders on May 6 approved ITC’s plan to demerge its hotels business, reports Reuters.

    The company, which has a substantial cigarette business, announced the demerger plan in July last year and later said that the new entity would be tentatively listed.

    In May, proxy advisory firms Stakeholders Empowerment Services and InGovern Research Services asked shareholders to support the proposal, while Institutional Investor Advisory Services opposed the move.

    The hotels business contributed 4 percent to ITC’s fiscal year 2024 revenue, while its mainstay consumer staples business made up 71 percent of the topline.

  • ITC Reports Growth in Cigarette Business

    ITC Reports Growth in Cigarette Business

    Timon Schneider/Wirestock

    ITC reported gross Revenue of INR694.46 billion ($8.34 billion) for the 12 months that ended March 31, up 6.8 percent over the comparable period a year earlier. Net revenue of conglomerate’s cigarette businesses was up 7.1 percent.

    “After a period of sustained growth momentum, the business witnessed consolidation in volumes on a high base amidst subdued demand conditions in the overall consumption space, even as illicit trade remained at elevated levels,” the company wrote in a statement.

    “Differentiated and premium offerings saw robust traction during the year. Sharp escalation in leaf tobacco prices and other inputs, along with increase in taxes were largely mitigated through improved mix, strategic cost management and calibrated pricing.”

    During the reporting period, ITC launched several new cigarette brands, including Classic Alphatec, Classic Icon and Gold Flake Indie Mint.

    The company continues to be concerned about the strength of the illicit market. While recent stability in cigarette taxes has enabled the legal cigarette industry to claw back some of the volumes lost to illegal traders, India remains the world’s third largest illicit cigarette market, according to ITC, with tax-avoiding products accounting for roughly one-third of the market.

    The company said it continues to engage with policy makers for a framework of evidence-based regulations and taxation policies that balance India’s economic imperatives and tobacco control objectives.