World Connect News
India’s leading FMCG and tobacco conglomerate, ITC Ltd, has implemented another round of price revisions across select cigarette offerings, delivering a direct hit to smokers’ pockets. The latest retail price adjustments specifically impact two widely consumed brands—Classic Connect and Gold Flake Super Star—with fresh inventory bearing the increased Maximum Retail Prices (MRP) already reaching distribution networks and retail counters across the country.
New Pack Rates: Classic Connect and Gold Flake Super Star
Dealer-level checks confirm substantial increases across both regular and premium tiers:
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Classic Connect (Pack of 20): The MRP has jumped from ₹390 to ₹428 per pack, translating into an increase of ₹38 or roughly 9.74%.
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Gold Flake Super Star (Pack of 10): The price has climbed from ₹79 to ₹89, registering a sharp increase of ₹10, or 12.66% per pack.
Cumulative Revisions Triggered by February Tax Overhaul
The latest price hikes represent an ongoing effort by cigarette manufacturers to absorb the expanded tax incidence introduced earlier this year. In February, tobacco products shifted to an elevated 40% Goods and Services Tax (GST) slab, accompanied by a restructured additional excise duty ranging from ₹2,050 to ₹8,500 per 1,000 sticks based on length and filter configurations. Consequently, Classic Connect—which stood at ₹300 in early February—climbed to ₹360 and then ₹390 before touching its current ₹428 peak. Similarly, Gold Flake Super Star rose from ₹59 to ₹70, then to ₹79 in May, before landing at ₹89.
Impact on Volumes and Market Reaction
While higher price points help ITC protect operating margins in the face of elevated central excise and GST burdens, market analysts caution that repeated upward revisions could exert pressure on overall volume growth and prompt down-trading. As older wholesale inventories exhaust over the coming days, consumers will encounter the revised MRP tags uniformly at kiosks, retail chains, and neighborhood pan shops.
