NEW DELHI: Cigarettes were one of the most sought after products, smuggled into India, during the coronavirus pandemic because of profit margins; higher than gold. As air travel and cargo movements were affected due to Covid pandemic induced restrictions, smugglers used diverse modus operandi to bring cigarettes illegally to India majorly from Dubai (UAE), Myanmar and Nepal, the directorate of revenue intelligence (DRI) has observed.
According to a report of the apex anti-smuggling intelligence, seizure of illegal cigarettes increased during pandemic (2020-21) by nearly 20 per cent.
The agency confiscated smuggled cigarettes worth Rs 76.95 crore while the value of total consignment impounded was Rs 93.02 crore in 2020-21.
The report says that the smugglers used cover cargo in containerized sea cargo and trucks.
It further summarises that 65 per cent of total confiscated stock was made from container concealment, 23 per cent from vehicles, five per cent from air cargo and seven per cent was town seizures.
The analysis made by the DRI, Dubai (UAE) and Myanmar have emerged as the main source of cigarettes being smuggled into India.
In 2020-21, as per the DRI statistics, 65 per cent of smuggled products had come from Dubai and eight per cent were brought from Myanmar. Just one per cent was from Nepal and the source of 26 per cent is not known.
Year | Value of cigarettes seized (in crore) |
2016-17 | 78.14 |
2017-18 | 34.29 |
2018-19 | 80.3 |
2019-20 | 76.95 |
2020-21 | 93.02 |
According to The Tobacco Institute of India (TTII), the illegal cigarette trade including smuggled products from abroad and locally manufactured tax-evaded cigarettes accounts for one-fourth of the cigarette industry in the country. India is considered the fourth largest illegal cigarette market in the world.
Referring to TTII’s findings, the DR’s report further says that only nine per cent of total tobacco consumption is legal cigarettes and 91 per cent are from illegal means including cigarettes and other tax-inefficient tobacco products such as bidis and chewing tobacco.
“Besides the Myanmar-India border, the smuggling kingpins based in Dubai carry out major operations through the sea route. Dubai continues to be a major transit point from where cigarette-concealed consignments are shipped to India. The brands being illegally coming to India reportedly manufactured in Indonesia and Malaysia. The consignments are initially sent to Dubai from southeast Asia and then re-routed to India. Presently, Dubai and Myanmar are considered to be two major points for smuggling contraband cigarettes to the country,” said an official of DRI.
The majority of the stock impounded violates Cigarettes and other Tobacco Products Act (COTPA) as the packets don’t have mandatory pictorial warning, he added.