Munger's Shadow Economy: From Cigarettes to Counterfeits

Munger, once famed for its cigarette industry, is now a hub for counterfeit cigarette production due to rising prices. Illegal operations outpace authorities, impacting revenue and health. Efforts are underway to curb this trend, with significant seizures highlighting the problem. Increased excise duty may exacerbate the issue.

Munger, a once-prominent name in Asia's cigarette production industry, is transitioning into a notorious epicenter for counterfeit cigarette manufacturing as prices continue to soar. The town's historical significance stems from hosting ITC Ltd's first factory in 1907, which marked the beginning of an era for cigarette production in India.

As cigarette prices have escalated over the last decade, Munger has emerged as a hotbed for illicit operations, a phenomenon that both the Bihar Police and the Directorate of Revenue Intelligence are actively combating. Recently, a major raid resulted in the seizure of counterfeit cigarettes worth approximately Rs 50 lakh, along with a substantial cash find, illuminating the entrenched nature of the trade.

Heightened vigilance accompanies rising excise duties on cigarettes, which are set to take effect next month. Authorities remain on high alert to curb renewed efforts to smuggle fake cigarettes, a parallel economy that also puts public health at risk. Meanwhile, the town's longstanding gun manufacturing tradition is similarly tainted by illegal practices.

(With inputs from agencies.)