Industry Leads Coordinated Efforts to Curb Illicit Tobacco Trade Across Key Markets



India’s illicit cigarette market remains a significant concern for tax authorities and enforcement agencies, with new industry-led intelligence efforts adding detail to the scale and geography of illegal trade. Recent estimates and seizures point to persistent challenges linked to smuggling routes, tax evasion, and enforcement gaps, even as the government prepares to strengthen regulatory mechanisms such as track-and-trace systems.

Mapping the Scale and Routes of Illicit Trade

Data from Euromonitor International indicates that India remains one of the world’s largest markets for illicit cigarette consumption, ranking behind China, Brazil, and Pakistan. The research attributes demand largely to the price gap between taxed and untaxed products.

Publicly available enforcement figures suggest that authorities seized smuggled cigarettes worth approximately Rs 600 crore during the 2024–25 financial year. The Directorate of Revenue Intelligence has identified the North-Eastern region as a major entry point, accounting for roughly one-third of total seizures, citing porous international borders. Other regions frequently cited in seizure data include the Maharashtra–Goa belt, Tamil Nadu, and West Bengal, reflecting increased use of coastal and maritime routes.

As part of market monitoring activities, an industry participant reported engaging with more than 3,000 retail outlets across 10 states to assess the presence of contraband cigarettes. The company has also stated that it provided capacity-building support to over 145 officers from customs and tax authorities on identifying illicit cigarettes.

Enforcement Measures and Policy Developments

The Government of India is in the process of strengthening its enforcement framework, including the planned rollout of a national track-and-trace mechanism for tobacco products. The system is intended to improve supply chain visibility and make it easier for authorities to identify and intercept illegal goods.

Navaneel Kar, Managing Director, said, “Illicit tobacco trade is not a new challenge, and neither is our commitment to addressing it. Our endeavor in India combines global expertise with local partnerships to strengthen enforcement, protect consumers, and support national priorities. This year, we engaged with over 50 key stakeholders from the Ministry of Finance, Ministry of Commerce & Industry, DRI, GST, Police, and Customs—deepening collaboration through market intelligence, advanced track-and-trace systems, and collaborative frameworks to curb the inflow of illicit cigarettes. Combating this issue requires sustained, collective action, and we remain committed to working in collaboration with regulators, enforcement bodies, and civil society to build a transparent and compliant tobacco ecosystem for India.”

Globally, tobacco multinationals operate under varying regulatory regimes that mandate digital marking and monitoring of cigarette packs. Industry representatives say such systems, when adapted to local conditions and overseen by regulators, have contributed to reduced illicit trade in some jurisdictions.

In India, enforcement agencies continue to emphasize inter-agency coordination, intelligence sharing, and technology adoption as key tools. Analysts note that while seizures highlight active enforcement, they also underline the resilience of smuggling networks.