PMI in India intensifies efforts against Illicit Tobacco Trade to Safeguard Economic Interests and Consumer Protection

Reinforcing its commitment towards illicit tobacco trade prevention, Philip Morris International’s (PMI) affiliate, IPM India intensifies its efforts to tackle the menace to safeguard India’s economic interest & protect consumers. The illicit tobacco trade is a major threat and growing challenge worldwide. As part of its continued efforts towards tackling the illegal trade menace, PMI's strategy focuses on five critical areas research & intelligence, protecting the supply chain, partnerships, cooperation with law enforcement, and raising awareness. The organization supports and helps law enforcement agencies by inspecting and authenticating seized products and performing forensic evaluations. Additionally, profiles illicit products, shares intelligence on emerging routes and trends shaping the black market, and trains officials on the innovative authentication and security features of products.
India has witnessed a significant rise in illicit in recent years and it only seems to rise with time. As per the reports, the total loss to the Govt. of India estimated for 2022, on account of the illicit markets in the tobacco industry is ₹13,331 crore, up from ₹6,240 crore in 2012, an increase of 46%. FICCI Cascade study 2022 highlights the overall market for illegal cigarettes in India is estimated to be at ₹22,930 crore.
As per the recent reports, throughout 2023-2024, law enforcement agencies have seized illegal cigarettes across many Indian cities- Guwahati, customs officials, and railway authorities confiscated over 11 lakh sticks on multiple occasions, with the Assam Rifles also making seizures. Visakhapatnam saw the police and customs seize over 21 lakh sticks, while in Vijayawada, the tally reached over 103 lakh sticks, including 75 boxes. Hyderabad’s police force seized 267 cartons and 4.5 lakh sticks. Additionally, Lucknow’s customs officials seized over 2.12 lakh sticks and a substantial number of packs and boxes.
Expressing concern over the rise of the illicit tobacco trade, Navaneel Kar, Managing Director, IPM India said, “Eliminating illicit trade has been a longstanding priority for us and continues to be an integral part of our efforts to drive operational excellence and build a sustainable future. In India, PMI has contributed significantly over the past decade, partnering with law enforcement and investigative agencies in the fight against the trade of illegal cigarettes. Public-private partnerships based on an inclusive approach by governments, the private sector, and civil society are vital to helping combat the trade. Interconnected systems and advanced technologies such as digitally verified track-and-trace systems, holograms, QR codes, and RFID tags are essential for monitoring and detecting counterfeit products.”