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The Tobacco Institute of India (TII) is a representative body of manufacturers, farmers, 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 is around Rs. 40,000 crores annually. Legal Cigarettes contribute 86% of tax revenue despite just 10% 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. 13,000 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 10% of overall tobacco consumed in India. The balance 90% 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 Cigarettes are subject to high & discriminatory taxation in India

As per data available up to 2016-17, cigarette taxes on a per kg basis of tobacco consumption are 55 times higher than the other tobacco products consumed in India.

Incidence of taxes on cigarettes after accounting for the GST Cess increase has trebled between 2012-13 and 2017-18.

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 around Rs.40,000 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 Rs. 13,000 crores.

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

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
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

Latest Publications

Infocus

Increasing Use of Indian Railways for Transport of Smuggled Cigarettes

ASSOCHAM – TARI Study Highlights Huge Economic Value of Tobacco in India

Illegal Cigarette Trade Poses a Huge Threat to India

The Severe Consequences of High Cigarette Taxation in India

Latest News

7
Dec
2019

Foreign cigarettes worth fifty lakhs seized in Amingaon [DY365]

4
Dec
2019

Bringing back smiles on faces of farmers [The Hindu]

3
Dec
2019

Bill to ban e-cigarettes gets Rajya Sabha nod; Oppn flags concerns [Hindustan Times]

25
Nov
2019

Foreign cigarettes being sold illegally [The Tribune]

23
Nov
2019

Gold, Cigs, laptop worth Rs.1cr seized [Deccan Chronicle]

21
Nov
2019

Tobacco growers asked to stick to crop size [The Hindu]

More News
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The Tobacco Institute of India

International Trade Tower, 316-318, 3rd Floor, Block 'E'

Nehru Place, New Delhi – 110019

Ph: 011-26231214/15/16, Fax: 011-26468482

E-mail: tii@tiionline.org

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