ITC hikes cigarette prices by up to 23%

ITC has increased the prices of some of its cigarette brands by up to 23%. While the new stocks with revised prices are yet to hit the market, smokers are already being asked to pay more than the maximum retail price printed on cigarette packs.

The prices of Classic and Gold Flake Kings have been increased to Rs 95 from Rs 85 for packs of 10 sticks.

Also, the prices of Bristol Filter have gone up to Rs 47 from Rs 45, Capstan Filter to Rs 47 from Rs 39, Flake Filter to Rs 48 from Rs 39 and Flake Excel Filter to Rs 45 from Rs 39. ITC sells three of every four cigarettes in India.

A spokesperson of ITC confirmed the price revision. "Prices of select ITC cigarette brands have been increased and new stocks are expected to hit the market shortly," the spokesperson said in an e-mailed statement.

However, prices of brands like Navy Cut at Rs 69, Gold Flake Filter at Rs 59, Gold Flake Premium Filter at Rs 58 and Scissors Filter and Flake Premium Filter at Rs 50 have been kept unchanged.

But shopkeepers have been charging a higher price for even these brands. For instance, a 10-stick pack of Navy Cut is currently being sold at Rs 75-80 across most shops in Kolkata. Shopkeepers blame the distributors for the inflated price. "We have been told that the price has increased across all brands of cigarettes. Hence, we are also asking customers to pay more," said a shopkeeper.

While the excise on sub-65 mm cigarette sticks has been increased by 72% in this year's budget, for longer sticks the hike was in the range of 11-17%. Industry analysts had said the excise rise was not going to result in a sharp increase in cigarette prices as sub-65 mm sticks do not form a major part of the volumes for most tobacco companies. ITC has seven to 10% of its volume in smaller cigarettes, analysts said.

ITC's Cigarette Brands	New Price	Old Price	Hike
Classic, Gold Flake Kings	Rs 95	Rs 85	11.80%
Bristol Filter	Rs 47	Rs 45	4.40%
Capstan Filter	Rs 47	Rs 39	20.50%
Flake Filter	Rs 48	Rs 39	23.10%
Flake Excel Filter	Rs 45	Rs 39	15.40%