This policy addresses the continued sale of Pan Masala and Zarda chewing tobacco in India despite the 2013 ban on Gutkha, and its impact on public health and revenue.
The Ministry of Health and Family Welfare acknowledges that the sale of Pan Masala and Zarda persists due to manufacturers complying with sub-regulation 2.11.5 of the Food Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011, which prescribes standards for pan masala but not gutka. The Food Safety and Standards (Prohibition and Restriction of Sales) Regulations, 2011, prohibits the use of tobacco and nicotine as ingredients in any food product.
The Department of Revenue reports that estimating revenue loss due to illegal trade in tobacco products is difficult due to its clandestine nature. However, in the current financial year up to June 2025, the Central Goods and Services Tax (CGST) zones and Directorate General of Goods and Service Tax Intelligence (DGGI) have detected 61 cases involving Guthka/Chewing Tobacco/Cigarettes/Pan Masala, with tax amounting to approximately Rs. 104.38 crore.
To strengthen enforcement, the DGGI and CGST field formations have been instructed to verify and enhance compliance among registered taxpayers and identify unregistered entities to bring them into the tax net. The policy aims to regulate Zarda more stringently, address the twin-pack loophole, and strengthen legal controls, as well as improve interagency coordination to mitigate the public health impact and revenue losses from oral tobacco products. Data on oral cancer incidence, prevalence, and mortality over the last five years, state/UT-wise and year-wise, will be provided (mentioned in part a to c of the question, but not in the answer).
Key Entities Referenced
Ministry of Health and Family Welfare: The Union Government ministry responsible for health policy in India, answering the Lok Sabha question.
Lok Sabha: The lower house of the Parliament of India, where the unstarred question was raised.
SHRI APPALANAIDU KALISETTI: Member of Parliament who raised the unstarred question regarding pan masala and zarda.
Pan Masala: A chewing tobacco product, the sale of which is being questioned despite bans on similar products like Gutkha.
Zarda: Chewing tobacco product that the government is considering regulating more stringently.
Food Safety and Standards Food Product Standards and Food Additives Regulations, 2011: Regulations that prescribe the standards for pan masala.
Food Safety and Standards Prohibition and Restriction of Sales Regulation, 2011: Regulations that prohibit the use of tobacco and nicotine as ingredients in any food products.
Central Goods and Services Tax (CGST): An indirect tax levied on the supply of goods and services in India.
GOVERNMENTOFINDIA
MINISTRYOFHEALTH AND FAMILYWELFARE
DEPARTMENTOFHEALTH AND FAMILYWELFARE
LOK SABHA
UNSTARREDQUESTION NO. 1079
TO BE ANSWERED ON25THJULY, 2025
INCREASING SALE OFPAN MASALAAND ZARDA
1079.SHRIAPPALANAIDUKALISETTI:
Will the Ministerof HEALTHANDFAMILYWELFAREbe pleasedtostate:
(a) whether the Government is aware that despite the ban on Gutkha since 2013, the sale of
Pan Masala and Zarda (chewing tobacco) as separate products continues across the country,
undermining tobacco control efforts and contributing to the rising burden of oral cancers and
if so, the details thereof;
(b) whether the Government proposes to take immediate steps to regulate Zarda more
stringently including addressing the “twin-pack loophole” and strengthening legal controls
and if so, the details thereof;
(c) the details of latest available data on oral cancer incidence, prevalence and mortality over
the last five years State/UT-wise and year-wise;
(d) whether the Government has assessed the extent of tax evasion, illicit trade and
unregulated manufacturing in the Zarda sector and if so, the details thereof; and
(e) the steps being taken by the Government to strengthen enforcement, licensing, taxation
and inter-agency coordination to reduce the public health impact and revenue losses from oral
tobacco products?
ANSWER
THE MINISTEROFSTATE IN THE MINISTRYOFHEALTH AND FAMILY
WELFARE
(SHRIPRATAPRAO JADHAV)
(a) to (c): The standards of pan masala are prescribed under sub-regulation 2.11.5 of Food
Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011. No
standards of gutka are prescribed under these regulation. Any manufacturer of pan masala is
required to comply with the requirements specified under the above stated sub regulation.
Further, as per the Food Safety and Standards (Prohibition and Restriction of Sales)
Regulation,2011, Tobacco andnicotine shall not be used asingredientsinanyfood products.(d) & (e): Department of Revenue has informed that illegal trade in tobacco products is a
clandestine activity, the loss in revenue cannot be accurately estimated. However, Central
Goods and Services Tax (CGST) zones and Directorate General of Goods and Service Tax
Intelligence (DGGI) have detected 61 cases of Guthka/Chewing Tobacco/Cigarettes/ Pan
Masala involving tax amounting to Rs.104.38 crore approximately in the current financial year
uptoJune 2025.
For steps taken to strengthen the enforcement action, the DGGI and CGST field
formations have been sensitised to verify and enhance the level of compliance of registered
taxpayersandalso toidentify unregistered entitiesso astobring theminthe taxnet.
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