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Tag: India

  • Customs Joins Case Against Duty-Free Nicotine Sales in India

    Customs Joins Case Against Duty-Free Nicotine Sales in India

    India’s customs authorities joined the health ministry’s legal challenge against Adani Group’s sale of nicotine pouches at airport duty-free shops, arguing that duty-free status provides tax benefits but does not exempt retailers from broader regulatory requirements. In a filing to the Mumbai High Court, customs officials said goods being “outside customs frontiers” for taxation purposes do not grant immunity from other laws, rejecting Adani’s argument that international departure-area shops are beyond the reach of domestic regulations.

    The company has challenged a health ministry inspection that found nicotine pouch sales at Mumbai International Airport’s duty-free stores violated Indian law, arguing the products are legally sold under duty-free rules and sealed for use after passengers leave the country. The case is scheduled for its next hearing on July 28.

  • India Seeks to Quash Adani’s Duty-Free Pouch Challenge

    India Seeks to Quash Adani’s Duty-Free Pouch Challenge

    India’s government is seeking to dismiss Adani Group’s legal challenge over the sale of nicotine pouches at Mumbai’s Chhatrapati Shivaji Maharaj International Airport, arguing that the products represent a “substantive violation” of drug laws and a public health risk. Authorities said nicotine pouches, which are classified as drugs under Indian law, remain unapproved and cannot be sold simply because they are imported, stored in customs-bonded warehouses, or marketed to departing international passengers. “The fact that they are stored in a customs-bonded warehouse does not mean they ⁠are not physically present in India,” the government said.

    Adani argued that drug regulations should not apply to duty-free sales and has challenged the regulatory interpretation in court, a case that could set a precedent for how India handles the sale of nicotine pouches at international airports. The government maintained that nicotine is an addictive chemical and warned that allowing unapproved products could expose consumers to products with unverified safety and quality standards.

  • Indian Court to Decide if Pouches Can be Sold at Airport’s Duty-Free Shops

    Indian Court to Decide if Pouches Can be Sold at Airport’s Duty-Free Shops

    An Indian government investigation found that nicotine pouches were being sold without required approvals at duty-free shops operated by a joint venture led by the Adani Group at Mumbai International Airport, prompting authorities to order sales to be halted and licenses obtained. According to court documents reviewed by Reuters, Adani is challenging the action, arguing India’s Drugs and Cosmetics Act does not apply to duty-free shops. The case, scheduled for a July 14 hearing, could establish how India regulates nicotine pouch sales at airport duty-free outlets as the government increasingly views the products as an unapproved public health risk.

  • PM India Calls to Disrupt Illicit Tobacco Ecosystem

    PM India Calls to Disrupt Illicit Tobacco Ecosystem

    A new industry update from the EU-ASEAN Business Council highlights the continued scale of illicit tobacco trade in India and across Southeast Asia, underscoring growing concerns over smuggling, counterfeit products, and unregulated nicotine markets. According to the Tobacco Institute of India (TII), illicit cigarettes account for nearly one-quarter of India’s domestic cigarette market, resulting in estimated annual revenue losses of around Rs. 23,000 crore ($2.4 billion). The report coincides with World Anti–Counterfeiting Day remarks from Philip Morris India, which reiterated calls for stronger enforcement and industry collaboration to combat illegal tobacco flows.

    Broader regional data from EU-ABC and Euromonitor International show the illicit tobacco market across ASEAN-6 generated an estimated $12.6 billion over 2024–2025, with illicit cigarette volumes rising 14% and illicit e-vape sales increasing 24% in the past year. Additional intelligence cited in the update points to a rapidly expanding global illicit nicotine ecosystem, including a multi-billion-dollar illegal e-cigarette market, alongside continued enforcement actions in India such as large-scale seizures of prohibited vaping devices and cigarette shipments. PM India said the findings reinforce the need for stronger track-and-trace systems, cross-border enforcement, and coordinated policy responses to curb the growing black market.

  • ITC Posts 32% Increase in Cigarette Revenue

    ITC Posts 32% Increase in Cigarette Revenue

    ITC Limited reported a marginal rise in quarterly adjusted profit as pricing gains in its cigarette business helped offset the impact of higher excise duties and rising input costs. Profit before exceptional items and tax increased 4.3% year-on-year to 66.9 billion rupees ($669.2 million), while total revenue rose 17% to 217 billion rupees ($2.2 billion). Cigarette revenue, which remains the company’s primary earnings driver, climbed about 32% to 110.66 billion rupees ($1.1 billion), supported by price increases across key brands and a shift in product mix.

    The company said profitability was pressured by India’s excise duty hike on cigarettes and higher raw material costs, including edible oil, soap noodles, and packaging inputs, which rose due to supply chain disruptions and geopolitical tensions linked to the Middle East. Analysts noted that price hikes of 20%–40% across major cigarette brands were not sufficient to fully offset the tax increase, suggesting continued near-term margin pressure despite resilient demand.

    Performance across other segments was mixed, with the consumer goods division posting 15% revenue growth and an improvement in EBITDA margin to 11%, while the agri-business segment declined about 16% amid global trade disruptions affecting commodities such as rice, coffee, and leaf tobacco.

  • BAT Launching Digital and Technology Hub in India

    BAT Launching Digital and Technology Hub in India

    British American Tobacco announced plans to open a new information, digital, and technology (IDT) hub in Fraser Town, Bengaluru, India, as part of efforts to strengthen its global technology footprint and accelerate its transformation into a more agile, data-driven business. The hub will house BAT’s newly created Future Capabilities Centre (FCC), designed to consolidate key digital, data, cybersecurity, artificial intelligence, and platform capabilities in one location to drive innovation and operational efficiency across the group.

    The FCC will create a range of highly skilled roles and tap into Bengaluru’s technology ecosystem to support BAT’s global operations through advanced digital solutions and strategic partnerships. According to Javed Iqbal, BAT’s Interim Chief Financial Officer and Director for Digital and Information, the center will play a critical role in scaling innovation and embedding technology at the core of the company’s operations as it adapts to a rapidly evolving business environment.

  • Indian Students Launch Pocket Spittoon to Tackle Health Issue

    Indian Students Launch Pocket Spittoon to Tackle Health Issue

    Solutionaries, a student collective in India, has developed a pocket-sized spittoon aimed at reducing public spitting, a persistent hygiene problem linked to oral cancers and respiratory diseases affecting an estimated 200 million people nationwide. The portable device locks after use, absorbs liquid, and minimizes odors, allowing users to spit cleanly instead of on streets, buses, or railway stations.

    Designed to be carried in a pocket or bag, the spittoon encourages personal responsibility while addressing health risks associated with chewing tobacco, paan, or gutkha. The creators, hailing from underserved communities, emphasize that changing public behavior requires practical, accessible tools rather than solely relying on penalties or awareness campaigns.

    The pocket spittoon joins other Indian innovations such as EzySpit biodegradable pouches and AI-based detection apps like Swachh AI, reflecting a growing focus on combining education, technology, and low-cost solutions to improve public hygiene and curb tobacco-related health problems.

  • Indian Police Seize 2,700 kg of Illicit Tobacco Products

    Indian Police Seize 2,700 kg of Illicit Tobacco Products

    Police in India seized more than 2,700kg of banned tobacco products in Thirumudivakkam today (Feb. 18) following a tip-off about a Karnataka-registered truck allegedly transporting the contraband for local distribution. Officers traced the vehicle to the Thirumudivakkam industrial estate, where they found it parked alongside a smaller truck; suspects fled the scene as police approached. A search of the vehicles uncovered the banned tobacco products bundled and ready for transport. A case has been registered, and efforts are under way to identify and apprehend those involved in the smuggling operation.

  • India ‘Illogical’ in Keeping Alternative Ban

    India ‘Illogical’ in Keeping Alternative Ban

    India has ruled out easing its 2019 ban on e-cigarettes, confirming that the prohibition will continue to include heat-not-burn tobacco products. The Health Ministry said the government is not considering amendments to the law and remains committed to evidence-based tobacco control measures, reinforcing restrictions in one of the world’s largest cigarette markets, where more than 100 billion cigarettes are sold annually and tobacco use is blamed for over 1 million deaths each year.

    The decision is a setback for Philip Morris International (PMI), which had lobbied Indian officials for years to allow its IQOS heated tobacco device, a move analysts viewed as a significant IQOS driver of future expansion. By maintaining the ban, according to Reuters, India effectively blocks PMI from introducing its flagship smoke-free product into a high-volume market that the company had hoped would support its long-term transition strategy.

    In an interview with Reuters, Jacek Olczak, the firm’s chief executive, said he had engaged with various people in India, adding that it was “illogical” for the market to be closed to smoking alternatives such as heated tobacco and vapes, but not cigarettes.

  • FAIFA: Tax Hike Will Harm Millions of Indian Tobacco Farmers

    FAIFA: Tax Hike Will Harm Millions of Indian Tobacco Farmers

    A new report by the Federation of All India Farmer Associations (FAIFA), developed with Artha Arbitrage Consulting LLP, warns that India’s revised tobacco tax regime, which took effect Feb. 1, could significantly disrupt the country’s flue-cured Virginia (FCV) tobacco sector. The policy reintroduced central excise duties on cigarettes and raised the GST rate on tobacco products to 40% while removing the GST compensation cess, increasing the overall tax burden. The report estimates the changes could reduce FCV crop offtake by nearly 20% and eliminate approximately 2.6 million man-days of employment across farming and related supply chain activities. It also projects illicit cigarette consumption could rise by roughly 39%, potentially exceeding 46 billion sticks, as higher prices shift demand toward unregulated products, while ongoing tax disparities between FCV-based products and other tobacco categories continue to contribute to declining FCV acreage and grower participation.