Tobacco
India orders crackdown on nicotine pouches, citing health risks, letter shows
India has directed states to take enforcement action against the sale of nicotine pouches, citing public health and risks to children. The health ministry said the tobacco-free products remain illegal and unapproved in India and are increasingly available online and offline. A federal drug panel has also recommended no new nicotine formulations.
FSSAI tightens pan masala packaging rules, bans plastic and plastic-laminated pouches
FSSAI has banned plastic-based packaging for pan masala under new regulations. These rules, effective from their publication, mandate paper or naturally derived materials. Tin and glass containers are also permitted packaging options for the product. This amendment aligns with broader FSSAI efforts to enhance food safety compliance nationwide. The regulator has also issued notices to several food brands and delivery platforms.
Indian cigarette makers ITC, Godfrey Phillips, VST Industries see revenue and profit decline after tax hike
Leading Indian cigarette firms reported revenue and profit declines in the recent quarter. This downturn followed significant government tax increases on tobacco products. ITC, Godfrey Phillips India, and VST Industries experienced reduced sales volumes. Companies adjusted pricing strategies to mitigate the impact of the new tax regime. The revised tax structure has placed considerable pressure on the industry.
India customs becomes second agency to fight Adani over nicotine pouches
Indian customs authorities support the health ministry's stance against Adani Group's airport nicotine pouch sales. The customs department stated that tax advantages do not exempt shops from regulatory controls. Adani Group is challenging the ban in Mumbai's High Court, arguing domestic regulations do not apply. Authorities deem Adani's interpretation of duty-free goods consumption as untenable and incorrect. The legal dispute over these popular nicotine products will be heard again soon.
BAT to cut 9,000 jobs globally as the world lights fewer cigarettes
British American Tobacco is slashing approximately 9,000 jobs globally as part of a major restructuring. This significant workforce reduction aims to cut costs and accelerate the company's pivot towards next-generation nicotine alternatives like vapes and pouches. The move, which includes outsourcing, is crucial for BAT's target of achieving substantial annual cost savings and repositioning itself in a rapidly evolving nicotine market.
ITC's business with BAT grows 10% to Rs 1,587 crore in FY26, but dividend payout falls 9%
ITC's business with major shareholder British American Tobacco (BAT) saw a 10% expansion in sales to Rs 1,587 crore in FY26, though dividend payouts to BAT decreased. Despite a complex history, BAT views its stake as strategic, citing India's market potential. These related-party transactions suggest strengthening ties between the two entities.
Two British American Tobacco-linked entities receive Rs 3,896 crore ITC dividend in FY26
British American Tobacco's Indian entities received ₹3,895.74 crore in dividends from ITC in FY26, a slight decrease from the previous year due to reduced holdings. ITC also acquired trademarks from BAT for ₹403.61 crore. Transactions between ITC and BAT group companies, including sales of goods and services, saw an increase, highlighting ongoing business ties.
ITC bulking up with products rich in protein and fibre: Sanjiv Puri
“India is also a protein-deficient market. We already have offerings such as high-protein atta, soya chunks and protein shakes, and we will continue to expand this portfolio,” said Puri, who added that he shed around six kilograms recently and now sticks largely to home-cooked meals, even carrying them on long-haul flights.
Experts back OTC access to NRT across all formats and dosages, including 2 mg and 4 mg, as India struggles with a Tobacco quit success rate under 5%
The report highlights the significant economic burden of tobacco use, particularly among low-income households, and underscores how reducing consumption can lead to measurable improvements in household welfare and economic mobility.
Quitting tobacco could give economic boost to over 20.5 million households in India
Imagine a future where millions of Indian families break free from the grasp of tobacco, climbing up the economic ladder. The most disadvantaged, particularly those in rural areas, will see the greatest advantages, while middle-income households can also experience considerable growth. This reveals the substantial economic incentives tied to quitting tobacco.
Must Watch
EAC-PM working paper calls for curbs on tobacco consumption; says it poses serious implications for public health
Tobacco consumption and spending have increased sharply in both rural and urban India between 2011-12 and 2023-24, raising concerns for public health and government finances, according to an Economic Advisory Council to the Prime Minister (EAC-PM) working paper. Per capita tobacco expenditure rose 58% in rural areas and 77% in urban areas, with tobacco-using households rising to 13.3 crore in rural India and 4.7 crore in urban India.
Family Feud: Delhi court summons Bina Modi for alleged assault of son Samir Modi
A Delhi court has summoned industrialist Bina Modi and lawyer Lalit Bhasin over an alleged assault on GPI executive director Samir Modi during a 2024 board meeting. The court found prima facie material against them, disagreeing with the police's initial decision not to prosecute. The incident reportedly involved a broken finger and instructions to prevent Samir Modi's entry.
India sticks to e-cigarette ban in snub for Philip Morris
India has firmly rejected Philip Morris International's extensive lobbying efforts. The government will not relax its 2019 ban on e-cigarettes, including heat-not-burn devices. Philip Morris had sought to introduce its IQOS product into the Indian market. India remains committed to its evidence-based tobacco control measures. The ban on these products will continue.
Cigarette tax hike may boost illicit trade, hurt employment and tax revenue: Report
With the new excise tax on cigarettes set to drive up prices, authorities may unwittingly trigger a rise in clandestine cigarette trade. This could pose challenges for tax collection efforts, while farmers dedicated to FCV crops might experience a slump in market demand. The ripple effect could lead to job losses within the farming community and related fields.
Cigarette prices jump as new excise regime kicks in, stoking smuggling fears
Cigarette prices have significantly increased following a new excise duty. This tax hike, the first in seven years, aims to align India's tobacco taxation with global health standards. Distributors report substantial price jumps on various cigarette types. The government is shifting to a 40% GST rate and will introduce additional excise duties from 2026.
Cess on pan masala to fetch Rs 14,000 cr in FY27
The government will collect Rs 14,000 crore from a new health and national security cess on pan masala in the next fiscal year. This cess, levied over the 40% GST, aims to create a dedicated resource for health and national security initiatives. The total tax incidence on pan masala will remain at 88%.
