NEW DELHI — Cigarette smokers across India will have to shell out more as diversified conglomerate ITC Ltd has initiated another round of price hikes across its popular cigarette lines, including Gold Flake and Classic variants. Market sources and dealer checks confirm that fresh stock carrying the revised Maximum Retail Price (MRP) has already commenced entering the distribution pipeline.
The latest price adjustments notably impact premium and mid-tier segments:
- Classic Connect (20-Cigarette Pack): The price has been hiked to ₹428, up from ₹390 earlier, reflecting an increase of ₹38 per pack (approx. 9.74%).
- Gold Flake Super Star (10-Cigarette Pack): The price has risen to ₹89, up from the previous rate of ₹79, marking a 12.66% upward revision.
Driven by Taxation Overhaul
This adjustment is part of a consecutive series of calibrated pricing moves undertaken by tobacco manufacturers following the major restructuring of tobacco duties under the Central Excise Act. Effective February 1, 2026, tobacco products transitioned to a steep 40% Goods and Services Tax (GST) bracket alongside newly structured additional excise duties tailored to cigarette lengths and filters.
The government’s excise overhaul raised duties progressively, resulting in cumulative retail price spikes. Analysts note that companies like ITC have been steadily passing on these escalating tax burdens to protect margins, leading to an aggregate price jump of over 40% in key premium offerings since the start of the year.
Market and Demand Impact
Despite multiple rounds of revisions in 2026, market experts project that the addictive nature of tobacco products generally stabilizes baseline demand. However, sustained consecutive increases continue to raise questions about potential impacts on overall legal sales volumes and the risk of consumers shifting toward lower-tier or illicitly traded alternatives.
On the bourses, the news sparked immediate positive sentiment for the stock, with ITC Ltd’s share price rallying over 2% on the National Stock Exchange (NSE) following reports of the margin-boosting price hike.
