ITC Market Hits in Kashmir Amid Steep Increase in Cigarette Prices

Srinagar, April 1, KNT: Cigarette sales have witnessed a sharp decline across Kashmir following a significant increase in prices by major tobacco companies, wholesalers and retailers said.

The drop in demand comes after steep hikes in popular brands, particularly those of ITC, which dominate the Valley’s tobacco market.

The development is significant as Kashmir is considered one of the major consumption markets for tobacco products in India, and any shift in demand reflects broader consumer response to pricing.

Retailers said ITC’s leading brands, Gold Flake and Classic, have been the worst hit after prices were increased by around Rs 70 per pack in a single revision.

Gold Flake, which was earlier priced at around Rs 170, is now being sold at approximately Rs 240, while Classic has seen a similar jump, traders said.

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“The sudden increase has directly impacted sales. Customers are either reducing consumption or switching to cheaper alternatives,” a retailer in Srinagar told the news agency Kashmir News Trust.

Wholesalers also reported a noticeable slowdown in bulk orders, indicating a broader contraction in demand across the supply chain.

“Movement has reduced significantly compared to previous months. The market has taken a hit after the price hike,” a wholesaler said.

Other companies have also revised prices, though the increase has been comparatively lower.

Godfrey Phillips has increased the price of Four Square by around Rs 30 per pack, while Cavanders has seen a rise of about Rs 10, traders said.

Despite these increases, market players said ITC products have been more affected due to the sharper hike in their pricing.

Traders attributed the decline in sales to price sensitivity among consumers, particularly in a market where cigarette consumption is widespread.

Some retailers said that while demand has not collapsed entirely, there has been a clear shift in buying patterns, with consumers opting for lower-priced brands or cutting down usage.

Retailers say sustained high prices could further impact consumption trends, especially if inflationary pressures continue to affect household spending. [KNT]