Cigarette Price Hike: ITC Raises Rates Of Classic Connect, Gold Flake Super Star Up To 12.66%; Check New MRP

Cigarette prices in India are moving higher again, with ITC Ltd increasing the maximum retail price of two popular products. Dealer-level checks indicate that revised-price packs of Classic Connect and Gold Flake Super Star have started reaching the market, giving consumers another increase to contend with this year.

ITC Cigarette Prices Rise Again: Classic Connect, Gold Flake Super Star Get Costlier

The latest changes are visible across two different pack sizes. The price of a 20-cigarette pack of Classic Connect has been increased to Rs 428 from Rs 390, while a 10-cigarette pack of Gold Flake Super Star now costs Rs 89 compared with Rs 79 earlier.

Classic Connect Cigarette Price Rises 9.74%

The MRP of the Classic Connect 20-cigarette pack has gone up by Rs 38, taking the price from Rs 390 to Rs 428. This represents an increase of around 9.74%.

The revised-price packs have already started entering the distribution chain, according to dealer checks, suggesting that consumers may begin seeing the higher prices across retail outlets as older inventory is replaced.

Gold Flake Super Star Price Increased By 12.66%

The price increase is sharper for Gold Flake Super Star. The MRP of its 10-cigarette pack has been raised from Rs 79 to Rs 89, resulting in an increase of Rs 10. The latest revision translates into a price rise of approximately 12.66% for the pack. With both brands seeing higher MRPs, the latest move adds to a series of price adjustments across the cigarette market following changes in tobacco taxation.

The cigarette industry's pricing strategy has been closely linked to the higher tax burden introduced earlier this year. From February 1, 2026, cigarettes and other tobacco products came under a 40% GST rate, along with a revised additional excise-duty structure.

The tax changes increased the cost pressure on cigarette manufacturers. Companies, including ITC, subsequently revised prices across a number of brands as they sought to offset at least part of the additional burden through higher retail prices.

Higher Cigarette Prices Could Affect Volumes

While increasing prices can help cigarette companies absorb higher taxes, there is a potential trade-off for the industry. A higher MRP makes cigarettes more expensive for consumers and could affect the number of cigarettes sold.

Nomura had previously highlighted this issue while assessing ITC's pricing response to the tax changes. The brokerage noted that price increases could help cushion the impact of higher taxation, but also pointed to the possibility of pressure on cigarette volumes.

For ITC, the balance between recovering higher taxes through pricing and maintaining demand will therefore remain important. The impact is likely to depend on how consumers respond to the latest round of increases and whether further price revisions are introduced across other brands.

The latest increases in Classic Connect and Gold Flake Super Star show that cigarette prices continue to adjust after the new tax structure came into effect. As revised-price inventory gradually moves through the distribution network, consumers could see different MRPs depending on the brand and pack size they purchase.

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