Do you buy illegal cigarettes? You might be helping fund a terrorist organisation

A recent study by a reputed research organisation Euromonitor claims that India is sixth largest illicit cigarettes market in the world and about 16% of products of tobacco industry is illegitimate. T

By: Admin | | Updated: January 11, 2013 9:42 am

A recent study by a reputed research organisation Euromonitor claims that India is sixth largest illicit cigarettes market in the world and about 16% of products of tobacco industry is illegitimate. These cigarettes evade the payment of excise, VAT, customs or any other applicable taxes and are thus cheaply and attractively priced, says the study conducted by reputed research organisation Euromonitor that has a presence in 80 countries. Also Read - Want to sleep? Stop smoking e-cigarettes

The official figures suggest that there was a drop in manufacturing from 109 billion sticks in 2006-07 to 101 billion in 2010-11. In stark contrast, the illegal industry has grown to about 20 billion sticks a year, having grown by a staggering 82% from 2004-2011. Also Read - Hookah more dangerous than other forms of smoking tobacco: Study

Euromonitor estimates that this trend is set to continue and illicit cigarette volume will increase to 23% of the total industry size by 2016. The vast majority of illegal cigarettes are the king-sized cigarettes which sell for Rs 80 a pack as opposed to Rs 120 a pack that legitimate cigarettes cost. According to the study, the size of the contraband cigarettes market in India is about Rs 2,000 crore per annum and it threatens the livelihoods of five million tobacco farmers who are already being hit by the gukta ban. The problem is particularly chronic in urban markets and also helps sell foreign brands which aren’t available locally without excise duty or other taxes. Also Read - Quitting smoking reduces bladder cancer risk in women

‘The growing share of illegal, contraband cigarettes has been responsible for significant erosion in demand for good quality Indian tobaccos, used by the domestic legal industry. It has been well documented by the WHO as well as the international media that international cigarette MNCs, faced with declining sales in their home markets, are seeking to expand their business in developing countries,’ the study says.

Also the smuggled cigarettes can do away with stringent anti-tobacco laws – particularly the graphic warnings that the policymakers want on the packets. ‘In the absence of printed MRP on the pack of contraband cigarettes, smugglers and agents of the trade make a handsome margin. In cities like Mumbai, Delhi, Pune, Bangalore and Hyderabad, trade in contraband cigarettes is conducted with brazen openness: a variety of smuggled brands are found at almost every cigarette selling outlets and consumers can find their smuggled brand of choice with ease,’ the study says.

Contraband cigarettes are smuggled into India from China, Myanmar, Bangladesh, Indonesia, Pakistan, the Gulf, Southeast Asian countries and even Europe. ‘Globally there are documents and reports that confirm the nexus between contraband in cigarettes and criminal, anti-social elements. In India, too, there have been speculations about the contraband cigarettes trade being – among other things – a possible source of funds for organized crime and outfits promoting terror. Clearly, the drive to curb the entry of contraband cigarettes into India needs to be undertaken in a more stringent, sustained and organized manner,’ the study says.

India.com Health View

Illicit cigarettes are a bigger problem than we think. By contravening regulations, it allows people to buy them at a significantly lower price while having no idea about the quality of the tobacco available. Sometimes, it’s not tobacco at all but substitutes like dried manure and wooden chips. Also every time you buy an illegal cigarette, know that the chances are that you’re most probably helping provide some money to a terrorist organisation or the underworld.

Published : December 28, 2012 12:38 pm | Updated:January 11, 2013 9:42 am

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