Lok Sabha Question No. 3626 (UNSTARRED), answered on 2021-03-17
Subject: Illegal Cigarette Trade
Ministry: COMMERCE AND INDUSTRY
Asked by: Jagdambika Pal

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 3626. TO BE ANSWERED ON WEDNESDAY, THE 17 TH  MARCH, 2021.

## ILLEGAL CIGARETTE TRADE

## 3626.  SHRI JAGDAMBIKA PAL:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य  एवं उद्योग मंत्री

- (a) whether there is an increase in the illegal cigarette trade in India and if so, the details thereof, year-wise since 2011 till date;
- (b) whether there are any estimates on the level of illegal cigarette trade in India and if so, the details thereof;
- (c) the steps taken by the Government to curb and stop the illegal cigarette trade in India along with the details and the outcome thereof;
- (d) whether the Government has any plans to ban sale of loose cigarettes in India or  has  taken  up  this  proposal  with  State  Governments  and  if  so,  details thereof;
- (e) the  number  and  the  details  of  States  which  have  banned  sale  of  loose cigarettes in the country;
- (f) whether the Government has taken cognizance of pollution caused by used cigarette  buds  and  if  so,  the  steps  taken  by  the  Government  to  curb  such pollution through cigarette buds?

## ANSWER

## वाणिज्य  एवं उद्योग मंत्रालय में राज्य मंत्री (श्री सोम प्रकाश) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a): As  per  data  provided  by Central  Board  of  Indirect  taxes  and Customs (CBIC), the details of the illegal cigarette trade in India since 2011 till date is enclosed at Annexure-I.
- (b): CBIC  has  informed  that  World  Health  Organisation  estimated illicit cigarette in India at 6% of the markets in 2016-17.
- (c): The  field  formations  of  Central  Board  of  Indirect  taxes  and Customs  (CBIC)  and  the  Directorate  General  of  Revenue

|            | Intelligence (DGRI) keep constant vigil on the illicit imports/smugglings of cigarettes. On detection of cases, strict action is taken in accordance with the Customs Act, 1962 and other existing provisions of laws, as applicable. Further, Ministry of Health and Family Welfare has acceded to the Protocol to eliminate illicit trade in tobacco products as adopted under Article 15 of the World Health Organization Framework Convention on Tobacco Control (WHO FCTC), to which India is a party, to develop the tracking and tracing mechanism.                                                                                                                                                                         |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d) & (e): | Section-7 of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 stipulates that no person shall, directly or indirectly, produce, supply or distribute cigarettes or any other tobacco products unless every package of cigarettes or any other tobacco products produced, supplied or distributed by him bears thereon, or on its label, the specified warning. States/UTs of Uttarakhand, Chandigarh, Jharkhand, Punjab, Mizoram, Sikkim, Uttar Pradesh, Jammu & Kashmir, Gujarat, Karnataka and Himachal Pradesh have issued specific Notifications/Orders for prohibiting sale of loose cigarettes/tobacco products. |
| (f):       | Government of India got a study carried out by Indian Institute of Toxicology Research (IITR), Lucknow to assess 'Whether cigarette and bidi butts fall within category of toxic waste or not'. The observations of the study are enclosed at Annexure-II. Further, for the environment protection, guidelines for disposal of cigarette/bidi butts is under preparation by Central Pollution Control Board (CPCB).                                                                                                                                                                                                                                                                                                                |

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ANNEXURE-I ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 3626 FOR ANSWER ON 17.03.2021.

## Details of illegal cigarette trade in India

| Year                  |   Value of the cigarette seized (Rs. in Crore) |
|-----------------------|------------------------------------------------|
| 2011-12               |                                           3.52 |
| 2012-13               |                                          23.42 |
| 2013-14               |                                          20.91 |
| 2014-15               |                                          94.06 |
| 2015-16               |                                        2395.82 |
| 2016-17               |                                         241.61 |
| 2017-18               |                                        1893.01 |
| 2018-19               |                                         169.59 |
| 2019-20               |                                         187.58 |
| 2020-21(up to Feb 21) |                                        1772.02 |

Note:  Value of seizures includes both smuggling across borders and domestic tax evasion.

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## ANNEXURE-II

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (f)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 3626 FOR ANSWER ON 17.03.2021.

Observations of Indian Institute of Toxicology Research on 'Whether cigarette and bidi butts fall within category of toxic waste or not'

1. The analysis of the cigarette/bidi butts reflect that as per the concentration  of  various  parameters  analyzed  are  lower  than  the prescribed limits and will not be toxic to human and environment.
2.        Cellulose  acetate  is  major  component  of  cigarette/  bidi  butts  and  its degradation shows it will persist for a longer duration. The degradation studies under natural environment conditions and laboratory simulating conditions  will  be  required  to  conclude  safety/toxicity  of  cigarette/bidi butts to further correlate with human health risk assessment.

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