How raising tobacco taxes can save lives and cut poverty across the Asia-Pacific
Representational Image

Guwahati: While bidis remain a staple across much of India, the Northeast has decisively shifted towards cigarettes, according to a new study by the National Institute of Public Finance and Policy (NIPFP).

The national report, based on the Household Consumption Expenditure Survey (HCES) 2022–23 of the National Sample Survey Office (NSSO), analysed trends in spending on tobacco and alcohol between 2011–12 and 2022–23. It warns that rising household expenditure on intoxicants poses “serious concerns for public health” and undermines poverty alleviation efforts.

“Over the last decade, household consumption expenditure on intoxicants has increased sharply. The rising preference for alcoholic beverages among higher-income groups and growing use of chewing tobacco and cigarettes among lower- and middle-income groups highlight the need for urgent policy intervention,” the study by Shivani Badola and Sacchidananda Mukherjee notes.

Nationally, bidi use has declined while spending on cigarettes and chewing tobacco has grown. Between 2011–12 and 2022–23, the share of household expenditure on chewing tobacco rose from 0.08% to 0.57% in rural areas and from 0.03% to 0.27% in urban areas. Cigarette spending also climbed, while bidi use dropped both in value and in volume.

But the Northeast has moved further than most regions.

On cigarettes, Mizoram reports the highest per capita consumption in rural areas (₹1,313). It is followed by Sikkim (₹1,225), Arunachal Pradesh (₹556), Delhi (₹556), and Telangana (₹415).

Expenditure on cigarettes is also quite high in rural parts of Meghalaya (₹374), Andhra Pradesh (₹317), and Tripura (₹313). In urban regions, Sikkim shows the highest expenditure on cigarettes (₹1,719), followed by Mizoram (₹1,514), Arunachal Pradesh (₹912), Tripura (₹804), and Meghalaya (₹775).

“This again highlights that residents of the Northeastern states spend more on cigarettes than those from other regions,” the study says.

“States with higher per capita expenditure such as Sikkim, Delhi, Telangana, and Arunachal Pradesh show a preference for cigarettes, foreign liquor, and beer. In the Northeast, this dual pattern of traditional and branded alcohol, alongside high cigarette use, makes a strong case for targeted campaigns and taxation,” the study concludes.

Alcohol consumption in the Northeast shows a dual pattern: traditional brews remain popular even as branded liquor gains ground.

In rural Arunachal Pradesh, households spend ₹989 annually on country liquor and toddy, among the highest in India, with Manipur close behind at ₹914.

At the same time, the region tops the charts in premium liquor consumption. Urban Sikkim leads with per capita annual spending of ₹4,232 on foreign liquor and beer, followed by Arunachal Pradesh (₹3,458).

This coexistence reflects both cultural continuity and aspirational consumerism, the study notes.

Assam and Nagaland: Tobacco Hotspots

Smokeless tobacco also remains a major concern. Rural households in Assam (₹459) and Nagaland (₹510) are among the top spenders on gutka and leaf tobacco, with their urban counterparts also spending significantly higher than the all-India average.

Public health experts warn that such trends aggravate the already high cancer burden in states like Assam.

The Policy Challenge

The authors of the study stress that rising expenditure on tobacco and alcohol requires urgent policy intervention. They recommend strengthening health taxes on cigarettes, chewing tobacco, and premium alcoholic beverages.

Higher-income groups, who spend disproportionately more on products such as foreign liquor, wine, and beer, can absorb these levies, while for poorer households, higher tobacco taxes may discourage use, since they are more price-sensitive.

At the same time, the study argues that taxation alone is not enough. Because unregulated and informal supplies of products like country liquor dilute the impact of formal excise measures, governments need to tighten regulations on production, storage, and distribution.

Targeted, state-specific campaigns on the health hazards of smoking and smokeless tobacco are also seen as crucial, given how consumption habits vary widely across regions—for example, cigarettes dominating in the Northeast, gutka and leaf tobacco in Assam and Nagaland, and bidis still holding sway in central India.

Importantly, the study highlights that poor households, already at the lower end of the socio-economic scale, spend a much larger share of their income on intoxicants, often at the cost of food, healthcare, and education.

To offset this burden, the researchers recommend that revenues from higher excise duties be reinvested into public health initiatives, including cancer care facilities, de-addiction centres, and large-scale awareness campaigns. This approach, they argue, would ensure that the social costs of intoxicants are directly counterbalanced by investments in prevention and treatment.

Also Read: “We Will Not Sell Our Land”: Mizoram rises against FCAA 2023

Independent Journalism Needs You
Roopak Goswami
Roopak Goswami Reporter, EastMojo

You just read a story that took days to report. Help us keep our reporters on the ground in the Northeast.

For Rs 83/month - less than a cup of coffee
Ad-free reading, support and keep important stories alive
Become a Member
OR

Support once (any amount)

(incl. 18% GST)
or
UPI QR Code
Scan to pay via UPI

Leave a comment

Leave a comment