ITC hikes Classic cigarettes price by 10

The company has increased by ten per cent the prices of 20-sticks packs of the Milds,the Regular and the Menthol in the Classic range from Rs 100 to Rs 110.

Interestingly,the firm distributed two prints in Mumbai in July. One at the old price and the second one with the new MRP.

Though the newly-priced packs hit some pockets of the Mumbai market only late last week,distributors and retailers,sensing a price hike,were hoarding the old prints and said to be selectively selling them loose,charging 50-100 paise more.

This is significant as the company was in the past was penalised by the Supreme Court for the same offence.

According to the sources,the Kolkata-based tobacco-to-hospitality major raised the cigarette prices on higher cost as some states have increased VAT on tobaccos in their last budgets.

Assam,Kerala,Gujarat,Maharashtra,Tamil Nadu,Bihar,Himachal Pradesh,Jammu amp; Kashmir,Rajasthan and Delhi have increased VAT on tobacco products in their FY8217;11 budgets. Tamil Nadu,which contributes 15 per cent to ITC turnover,hiked cigarette VAT to 20 per cent from 12.5 per cent.

ITC8217;s immediate rival Godfrey Phillips India,which sells brands like Marlboro,Four Square,Stellar,Cavanders and Red amp; White,however,said it has no immediate plans to increase the rates of any of its brands.