India has a unique pattern of tobacco consumption
Legal Cigarettes account for just 8% of overall tobacco consumed. The remaining 92% consumption is in the form of 29 cheaper tobacco products such as bidis, chewing tobacco, khaini etc. and illegal cigarettes.
This is unlike rest of the world where tobacco is synonymous with Cigarettes representing 90% of tobacco consumption.
Cigarette consumers are the smallest constituent of adult tobacco users in India
According to the Global Adult Tobacco Survey 2016-17 (GATS-2), published by the Ministry of Health & Family Welfare, Government of India, while the consumer base of tobacco users in India is 28.6% of adults, the adult cigarette consumer base is only 4%.
Source: Global Adult Tobacco Survey (GATS) – India 2016-17,
Ministry of Health & Family Welfare, Govt. of India
Despite just 8% share of tobacco consumption, legal cigarettes contribute a very high proportion of tax revenue.
Inequitable tobacco taxation policy is leading to increase in overall tobacco consumption whilst cigarette consumption is declining.
Tobacco Consumption in India (Million Kgs)
|
Year |
Legal Cigarettes |
Other Tobacco forms* |
Total* |
|||
|
Million Kg. |
Share | Million Kg. | Share | Million Kg. |
Share |
|
|
1981-82 |
86 |
21% | 320 | 79% | 406 | 100% |
| 2020-21 |
49 |
8% |
559 | 92% | 608 | 100% |
| Difference | -37 (-43%) |
+239 (+75%) |
+202 |
|||
Source: USDA; Tobacco Board; FAO
* Includes illegal cigarettes
Over the last three decades, the legal cigarettes’ share of total tobacco consumption in India has declined from 21% in 1981-82 to 8% in 2020-21. During the same period the overall tobacco consumption in the country has increased by 50%. This drop in legal cigarettes is reflected in the shift to the illegal cigarettes and cheaper tobacco products.
Per capita consumption of Cigarettes in India amongst lowest in the World
Despite accounting for 18% of the world population, tobacco consumption in the form of Cigarettes in India is less than 2% of global consumption. According to WHO estimates, of the 350 million smokeless tobacco users in the world, a substantial 69% of them are in India. India has the lowest per capita consumption of Cigarettes in the world – just 89 cigarettes per annum.
Source: The Tobacco Atlas – 6th Edition (American Cancer Society), 2018
