 "Tobacco and betel shops contribute 7-10% of total FMCG turnover in the country and account for 65-75% of cigarette sale volume")
Following the union health ministry's advisory to states to restrain small shops to stop selling any eatables in case they are selling tobacco products, shopkeepers are expected to choose to sell tobacco products over eatables due to high margins. In turn, this could lead to total realignment of entire supply chain of fast moving consumer goods (FMCG) products routed through roadside shops, impacting sales.
Industry officials are of the view that, once laws based on the advisory are enacted and such shops, which make up for 25 per cent of the 10 million strong retail outlets in the country, get registered
