Excise Duty Hike Drives Cigarette Prices Up by ₹22–55 per Pack Across Brands

Cigarette prices across India surged on Sunday following the implementation of additional excise duty, with distributors reporting increases of ₹22–₹25 per pack of 10 sticks, while premium cigarettes now cost an extra ₹50–₹55 per pack. The move comes after the Union government revised taxation on tobacco products as part of its broader fiscal measures.

According to distributors, the 76 mm premium cigarette variants will see the highest increase, while larger 84 mm packs, such as Wills Classic, Wills Classic Milds, and Gold Flake Lights, will now retail for ₹220–₹225 per pack, up from the previous ₹170. Popular mid-sized options, including Wills Navy Cut (76 mm), will see prices rise from ₹95 to around ₹120 per pack.

While manufacturers have not yet officially declared revised maximum retail prices (MRP), distributors have already begun billing retailers for old stock at new prices, inclusive of 40% GST, anticipating that fresh stock with updated MRPs will reach the market from Monday. Wholesale markets remained closed on Sunday, but stockists expect deliveries from manufacturers by the end of the month.

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The All India Consumer Products Distributors Federation (AICPDF), representing over 4.5 lakh distributors and 1.3 crore retail outlets, warned that sharp price hikes could push buyers toward smuggling and counterfeit products, threatening traditional brick-and-mortar retail networks. “Tobacco products are among the few categories where small shopkeepers are still relevant. If this too is pushed into illicit channels, what will be left for honest retailers? This is not just about taxation—it is about survival,” said D Patil, president of AICPDF.

The federation highlighted that there are approximately 8,000–9,000 stockists of cigarette and tobacco products nationwide, who could be adversely affected by sudden price spikes. Distributors also noted that companies are temporarily holding back some stock until they adjust to the new tax structure, which could lead to short-term supply constraints in certain regions.

The excise duty hike is part of the government’s broader effort to raise revenue while discouraging tobacco consumption, but it may have unintended consequences for legal retail channels if buyers turn to black-market alternatives. Consumers should expect the new MRPs to be fully reflected in stores by Monday, with both urban and rural markets adjusting to the changes in the coming week.

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