Hoarding of tobacco products hits consumers hard

Devanakonda: An alleged artificial shortage of cigarettes and gutka in Pattikonda and Devanakonda areas of Kurnool district has caused concern among tobacco consumers ahead of the Union Budget.

With speculation of a possible tax hike on tobacco products, supply agencies are reportedly restricting regular distribution for the past one week, resulting in an abnormal demand–supply imbalance in the local market.

Local sources allege that certain wholesale dealers are deliberately diverting stocks and hoarding large quantities of cigarettes and gutka in private godowns instead of supplying them to retailers.

This practice is said to have encouraged black marketing, forcing consumers to purchase the products at inflated prices.

Many retail outlets are reportedly facing reduced supplies, leaving consumers with limited options.

Speaking to The Hans India on Tuesday, consumers Ranganna, Rangaswamy and Veeresh alleged that the shortage was being created intentionally to exploit the anticipated Budget announcement.

They further claimed that some big traders were hoarding stocks with the tacit support of supervisory and enforcement officials.

The consumers also expressed suspicion over alleged night-time movement of large consignments to godowns in and around Devanakonda, a region close to the Karnataka border.

The shortage has already led to a price hike at the consumer level, with cigarettes being sold at Rs 2 extra per stick and gutka packets costing Rs 3 more than the usual price. Consumers complain that many shops do not issue bills and operate with “zero official business,” indicating possible tax evasion and illegal trade.

Fearing further price escalation and prolonged shortages before the Budget, consumers have urged higher authorities to inspect godowns, curb hoarding and black marketing, and ensure fair and smooth availability of tobacco products in the region.