Philip Morris India Calls For Stronger Enforcement To Tackle Illicit Tobacco Trade

PM India (Philip Morris India Trading Private Limited) has called for stronger enforcement mechanisms and deeper inter-agency collaboration to tackle the rapidly expanding illicit tobacco trade, warning that the issue has evolved into a complex global network affecting both revenue systems and consumer safety.

The company highlighted that illicit cigarettes account for nearly one-fourth of India’s domestic cigarette market , resulting in an estimated annual revenue loss of around ₹23,000 crore , according to the Tobacco Institute of India (TII). It noted that the scale of the problem is increasing due to cross-border smuggling routes and weak points in supply chain monitoring.

Beyond cigarettes, the illicit market has expanded significantly to include e-cigarettes, vapes, and other unregulated nicotine products , which often bypass taxation and safety regulations. This shift has created a broader illegal ecosystem that is harder to detect and control through traditional enforcement methods.

Citing global findings, the statement referred to reports indicating that the illicit tobacco market across ASEAN regions has generated billions of dollars in revenue in recent years, with sharp growth in both illicit cigarette and vape sales , reflecting rising demand driven by lower prices and easier accessibility.

PM India stressed that the supply chain for these products is supported by well-established smuggling networks and regional trade routes , making enforcement a cross-border challenge. Key production hubs and distribution channels spread across multiple countries further complicate regulatory oversight.

The company also pointed to recent enforcement actions by Indian agencies, including large-scale seizures of illegal cigarettes and banned vaping devices , as evidence of both the severity and persistence of the problem across regions.

Emphasising solutions, PM India called for intelligence-led enforcement operations , enhanced coordination between customs, revenue intelligence, and other agencies, and stronger regulatory frameworks. It also underlined the importance of track-and-trace systems to improve transparency across the tobacco supply chain and prevent diversion into illegal markets.

According to the company, addressing illicit tobacco trade effectively requires a joint approach involving government authorities, enforcement bodies, and industry stakeholders to safeguard legitimate trade, protect public revenue, and reduce risks posed to consumers.

It added that India’s large tobacco market position makes it especially important to strengthen enforcement systems and lead coordinated regional efforts against smuggling networks.