PMI In India Hails Track & Trace (T&T) Mechanism Roll Out In The Country Aimed At Curbing Illicit Tobacco Trade

The advent of Track & Trace technology heralds a transformative era in curbing illegal trade of cigarettes and other tobacco products

NEW DELHI, May 21, 2025 /PRNewswire/ -- Philip Morris International Inc.'s (PMI) India affiliate, IPM India, today hailed India's decision to roll out pack-level Track and Trace (T&T) as a game-changing move against illicit tobacco trade and a major step towards modernizing regulatory enforcement. Approved under Section 148A of the Central Goods and Services Tax (CGST) Act, this reform marks a bold move to protect revenue, tighten enforcement, and bring greater transparency and accountability to India's tobacco market. Starting with cigarette packs, the government has chosen a smart, high-impact strategy to curb illicit tobacco trade. The proposed mechanism may incorporate Unique Identification Markings on packs, which will enable enforcement agencies to easily distinguish tax-paid products from illegal ones—strengthening oversight across retail shelves, supply chains, and field operations. The proposed T&T mechanism will be a practical, real-world solution designed for immediate impact—and a critical foundation for a more modern, technology-driven regulatory system.

With operations across multiple markets, PMI brings deep, practical experience from some of the world's most advanced T&T systems & implemented it voluntarily in 140+ markets worldwide. In the European Union, PMI operates under the Tobacco Products Directive, where every pack is digitally tagged and monitored through the supply chain. Similar systems have been successfully deployed in UK, Russia, Jordan, Gulf Cooperation Council (GCC), where PMI has worked with national authorities to build scalable, locally adapted traceability frameworks. Across all markets, the outcome have been consistent: better visibility, stronger compliance, and measurable reductions in illicit trade.

Illicit tobacco trade isn't just a revenue problem—it's a public health threat, a blow to lawful businesses, and fuel for the informal economy. Track and Trace is a proven tool for modernizing supply chains and enforcement. By clearly separating legal from illegal products, it not only protects consumers but also secures tax collections and promotes a level playing field for compliant operators.

Emphasising the need for a stringent T&T mechanism, Navaneel Kar, Managing Director, IPM India said, "This is a landmark reform and a visionary step towards a cleaner, more modern, and a transparent market. With thoughtful execution, India's T&T system can reshape the fight against illicit tobacco trade—boosting public trust, strengthening government revenues, and accelerating the modernization of enforcement practices. Eliminating illicit tobacco trade has been a longstanding priority for us and remains integral to our broader efforts in driving operational excellence and building a sustainable future. PMI has long invested in technologies that protect supply chain integrity globally, and we are committed to partnering with the Indian government to make this initiative a success."

India's move to ratify the illicit tobacco trade protocol, also aligns with international standards. T&T is a core requirement under Article 15 of the WHO Framework Convention on Tobacco Control (FCTC) and the 2014 Protocol to Eliminate Illicit Trade in Tobacco Products. As one of the world's largest tobacco markets and a key transit hub, India's leadership sends a powerful global signal toward modernization and digital oversight.

Implementation of the proposed T&T systems should allow interoperability, facilitate innovation and the optimization of enforcement activities along with independent, cost-effective solutions that do not disrupt the manufacturing and distribution environment.

But technology alone won't deliver results. Collaboration is essential. Effective systems require close cooperation between governments, industry players, and technology providers. Solutions must be flexible enough to reflect India's enforcement realities and dynamic enough to stay ahead of evolving risks.

India's T&T mechanism rollout is just the beginning. It sets the stage for a broader modernization of supply chain regulation—expanding across more products, deeper distribution layers, and even into other sectors facing similar challenges. With smart partnerships and sustained innovation, India can build one of the world's most resilient, transparent, and future-ready regulatory ecosystems.

About IPM India

IPM India Wholesale Trading Private Limited is a joint venture between Philip Morris Brands SARL of Switzerland and two Indian entities, Godfrey Phillips India Limited and K.K. Modi Investment & Financial Services Private Limited.

Photo: https://mma.prnewswire.com/media/2692821/Track_and_Trace_mechanisms.jpg