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Gutkha Shortage Triggers Black Marketing, Prices Soar in Guwahati

Explaining the reason behind the shortage, the trader said production has been halted following a 40 per cent GST hike on gutkha products.

Sentinel Digital Desk

Guwahati: A shortage of popular gutkha brands in Guwahati has led to a sharp rise in prices and the emergence of black marketing, traders and retailers said, attributing the situation to a recent hike in Goods and Services Tax (GST).

A Guwahati-based trader, who requested anonymity, said the limited availability of certain gutkha products has pushed prices up across the city.

“There is a shortage of these gutkhas in the market in Guwahati, so they are being sold in black. The price of Sekhar has gone up from Rs 200 to Rs 280 and even Rs 380 due to black-market availability. Consumers are now buying it at Rs 15 per packet, compared to Rs 10 earlier.”

He added that while brands such as Rajnigandha, Signature and Vimal have not seen a major impact, Kamla Pasand, popularly known as KP, has also witnessed a price hike.

“Earlier, KP was sold at around Rs 250 per bundle. Now it is being sold for Rs 280 to Rs 290,” the trader avowed.

Explaining the reason behind the shortage, the trader said production has been halted following a 40 per cent GST hike on gutkha products.

“Manufacturing units have been shut since January 25 and are expected to reopen on March 30. The manufacturers want to clear old stock before reintroducing products with revised prices reflecting the higher GST,” he said.

“Gutkhas are being sold in black because regular sales would lead to disputes, as fresh supplies are not coming in,” he opined.

A Guwahati-based retailer also confirmed the scarcity of chewing pan masala products in the market.

“All gutkha products are not easily available in Guwahati these days. Since the GST rate has been increased to 40 per cent, prices have gone up and consumers are paying more,” he said, requesting anonymity.

He further added that cigarettes are also facing similar issues.

However, when asked about the reasons behind black marketing, the retailer said, “I am not aware why these products are being sold in black.”

The shortage has affected consumers across Guwahati, with buyers forced to pay higher prices amid uncertainty over when normal supplies will resume.