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The Tobacco Institute of India (TII) is a representative body of farmers, manufacturers, exporters and ancillaries of the cigarettes' segment of the tobacco industry in India.
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Tobacco Industry provides livelihood to 45.7 million people including farmers, farm labour, rural poor, women, tribals etc.
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India has a unique pattern of tobacco consumption with Legal Cigarettes accounting for just 8% of overall tobacco consumed.
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The combined tax revenue collected from tobacco products is around Rs. 53,000 crores annually. Legal Cigarettes contribute a very high proportion of tobacco tax revenue despite just 8% share of tobacco consumption.
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Illegal Cigarette trade accounts for one third of the Cigarette Industry in India, resulting in a revenue loss of  Rs. 15,500 crores annually.

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Enforcement and surveillance efforts of the Govt. have led to increased seizures of illegal cigarettes.
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Illegal Cigarette Trade in India is adversely affecting the Livelihood and Earnings of Tobacco Farmers.
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WHO Framework Convention on Tobacco Control (FCTC) Proposals are a threat to the livelihood of Tobacco farmers in India.
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01Tobacco consumption pattern in India is unique

Legal cigarettes account for just 8% of overall tobacco consumed in India. The remaining 92% of consumption is in the form of illegal cigarettes and 29 tax -inefficient tobacco products such as bidis, chewing tobacco, khaini etc.

This is unlike the rest of the world where tobacco is synonymous with cigarettes, representing 90% of tobacco consumption.

02Legal Cigarette Industry is the primary Tobacco revenue contributor to the Govt.

Tobacco & Tobacco Products are a large contributor to the Government's Tax Revenue. As per the Rajya Sabha Starred Question number 860 dated 9th February 2021, the Government collected tax revenue of more than Rs. 55,000 crores in 2019-20 from tobacco products. Legal cigarettes contribute a very high proportion of the total tobacco tax revenue despite accounting for just 8% share of tobacco consumption.

03Tobacco is a very important commercial crop in India

India is the world’s 2nd largest producer and a major exporter of tobacco. With an estimated annual production of 800 million kgs., tobacco is an extremely important commercial crop in the country, providing livelihood to 45.7 million people.

As per the Rajya Sabha Starred Question number 860 dated 9th February 2021, the Government collected tax revenue of more than Rs. 55,000 crores in 2019-20 from tobacco products.

04The Growth of illegal Cigarette trade poses serious threat in India

Illegal Cigarette trade accounts for as much as 1/3rd of the Cigarette Industry in India, causing an annual revenue loss of Rs. 15,500 crores per annum.

Extremely high tax rates on Cigarettes provide a profitable opportunity for tax evasion thereby encouraging growth in illegal trade.

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Recent Additions & Highlights

TII brings out New Publication on Sharp Growth in Illegal Trade in India
The latest issue of TII Tobacco News is now available under Publications
TII Publishes Third Edition of its Handbook on Illegal Cigarette Trade in India
Spurt in illegal Cigarette Seizures in India

Tobacco Industry Latest Publications

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Record Prices Bring Cheer to AP Farmers

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Cyclone Mandous Hits FCV Tobacco Crop

Latest News

3
Sep
2023

DRI seizes foreign cigarettes worth Rs 6.5 cr at Mundra port [ANI]

29
Aug
2023

Foreign cigarettes worth Rs 90 lakh seized in Vijayawada [The New Indian Express]

29
Aug
2023

Compound in tobacco leaves may aid fight against cancer: Study [The Times of India]

23
Aug
2023

Tobacco Institute of India demands export incentives for tobacco [The Times of India]

23
Aug
2023

India exported tobacco worth ₹9,740 crore during 2022-23, according to TII [The Hindu]

18
Aug
2023

Customs Department seizes foreign cigarettes, areca nuts in Guwahati [The Sentinel]

More News
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