Cigarette sales fall by up to 40% after demonetisation
The cigarette sales have fallen by 30-40% at the vendors’ level after the government's order to demonetise old ₹500 and ₹1,000 notes. This was attributed to the prevailing cash crunch, following which smokers are reducing cigarette consumption and saving money to buy essential items. If this continues, cigarette manufacturers like ITC may have to cut back productions, analysts said.