New Delhi:
Philip Morris International (PMI) India has officially welcomed the Indian government’s rollout of the Track and Trace (T&T) mechanism, which is aimed at tackling the persistent issue of illicit tobacco trade in the country. The implementation of this system is seen as a significant step toward promoting transparency, improving regulatory oversight, and reducing the widespread circulation of untaxed and unregulated tobacco products.
The T&T mechanism is a digital solution designed to monitor and record the journey of tobacco products across the supply chain — from manufacturing to retail distribution. With unique identification codes and digital labeling, this system enables authorities to verify the legitimacy of tobacco packs and ensures compliance with tax laws. By introducing this technology-driven tool, the government aims to close regulatory loopholes and strengthen enforcement against smuggling and counterfeiting.
PMI India has been vocal about the damaging effects of the illicit tobacco market, which not only causes substantial revenue losses to the government but also undermines public health policies. The company believes that the T&T system can be an effective deterrent against the illegal trade of tobacco and a key part of broader efforts to ensure that only compliant and tax-paid products reach consumers.
In an official statement, a spokesperson from PMI India said, “We commend the Indian government for taking this bold and necessary step. The introduction of the Track and Trace system is critical in fighting illicit trade, protecting consumers, and ensuring a level playing field for legitimate businesses. We are committed to working with authorities and stakeholders to ensure successful implementation.”
According to industry estimates, India loses thousands of crores in tax revenue every year due to the sale of smuggled or counterfeit tobacco products. The introduction of the T&T system is expected to reduce these losses significantly. It also aligns with global practices recommended by the World Health Organization’s Framework Convention on Tobacco Control (WHO FCTC), which urges countries to implement such systems to curb the illegal tobacco market.
Public health experts also believe that curbing illicit trade will contribute to reducing tobacco consumption. Many illegal products are sold at lower prices, making them more accessible, especially to young and vulnerable populations. With tighter control and better enforcement, the T&T system can support national tobacco control goals.
PMI India has expressed its willingness to collaborate with the government in training, compliance, and technological adoption to ensure smooth rollout. The company also called on other industry players to participate actively in this initiative.
As India continues to modernize its regulatory frameworks, the T&T mechanism represents a meaningful leap forward. If effectively implemented, it could serve as a model for other sectors facing similar challenges related to counterfeiting and illegal trade.
