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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 10% of overall tobacco consumed.
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The combined tax revenue collected from tobacco products, including pan masala, is more than Rs.72,000 crores annually. Legal Cigarettes contribute a very high proportion of total tobacco tax revenue.
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Illegal Cigarette trade accounts for one third of the legal Cigarette Industry in India, resulting in a revenue loss of estimated Rs.21,000 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 10% of overall tobacco consumed in India. The remaining 90% 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 Lok Sabha, Unstarred Question No. 1499 dated 28th July 2023, tobacco products including pan masala generate Tax revenues amounting to more than Rs.72,000 crores annually. Legal cigarettes contribute a very high proportion of the total tobacco tax revenue despite accounting for just 10% 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 Lok Sabha, Unstarred Question No. 1499 dated 28th July 2023, Tobacco products, including pan masala generate Tax revenues amounting to more than Rs.72,000 crores annually.

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

Illegal Cigarette trade accounts for as much as 1/3rd of the legal Cigarette Industry in India, causing an annual revenue loss of estimated Rs. 21,000 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

Infocus

4th Anti-Smuggling Day

MASCRADE 2024

1st TII Tobacco Scientist Awards

Seminar on Global Challenges of Illicit Trade and the Way Forward

Latest News

13
May
2025

Assam Police seize over 1.5 lakh foreign cigarettes in Guwahati, two arrested [India Today NE]

5
May
2025

Tripura: BSF seizes contraband worth Rs 3 cr; foreign brand cigarettes, mobile displays recovered [The Sentinel]

24
Apr
2025

ED sleuths blow lid off foreign cigarette smuggling network in Hyderabad [The Times of India]

22
Apr
2025

In relief to tobacco farmers, Government notifies three-year validity for grower registrations and barn licenses [The Tribune]

21
Apr
2025

Assam Rifles Seizes Foreign-Origin Cigarettes Worth Rs 59.8 Lakh in Mizoram [NorthEast Today]

17
Apr
2025

Tea, coffee, tobacco, spices register 16% export growth in FY25 [The Hindu Business Line]

More News
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Nehru Place, New Delhi – 110019

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E-mail: tii@tiionline.org

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