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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 9% of overall tobacco consumed.
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The combined tax revenue collected from tobacco products is more than Rs. 43,000 crores annually. Legal Cigarettes contribute 80% of tax revenue despite just 9% share of tobacco consumption.
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Illegal Cigarette trade accounts for one fourth of the Cigarette Industry in India, resulting in a revenue loss of more than Rs. 15,000 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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Growing 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 9% of overall tobacco consumed in India. The balance 91% of consumption is represented by traditional products like chewing tobacco, bidis, khaini etc. and illegal cigarettes.

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 contribute Rs.43,000 crores worth of Tax Revenue to the Government annually. Legal cigarettes contribute 80% of the total tobacco tax revenue despite accounting for just 9% share of tobacco consumption. Revenue realisation by the Government on a per kg basis of Tobacco used in various product forms is 41 times higher on cigarettes than other tobacco products.

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.

Tobacco products generate significant tax revenues amounting to more than Rs.43,000 crores annually.

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

Illegal Cigarette trade accounts for as much as 1/4th of the Cigarette Industry in India, causing an annual revenue loss of more than Rs. 15,000 crores per annum.

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

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Recent Additions & Highlights

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

Tobacco Industry Latest Publications

Infocus

Increase FCV Tobacco Production to Compete in Global Market, FAIFA to Govt.

Assam Rifles Lauded for Successful Interception of Illicit Cigarettes

COVID-19 Triggered Economic Distress Sees Sharp Spike in Smuggling of Goods: FICCI CASCADE

COVID-19: FCV Farmers Fear Huge Loss Due to Auction Disruptions

Latest News

8
Apr
2021

Heroin worth Rs 1,18,84,000 & foreign cigarettes worth Rs 15,60,000 recovered in Mizoram [NorthEast Now]

7
Apr
2021

Tobacco growers worried as COVID-19 second wave induces price correction [The Hindu]

1
Apr
2021

Smuggler conceals gold in face mask, held at Chennai airport [NDTV]

31
Mar
2021

Smuggled Myanmar cigarettes worth lakhs seized at Maulkawi [The Sentinel]

28
Mar
2021

Foreign cigarettes seized from New Bongaigaon Railway Station [Purbanchal Prahri]

26
Mar
2021

‘Majority smokers against plan to ban sale of loose cigarettes’ [Millennium Post]

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The Tobacco Institute of India

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Nehru Place, New Delhi – 110019

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E-mail: tii@tiionline.org

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