GST cut on bidis unlikely to sway Bihar voters, analysis shows

Bidi consumption is lowest in Bihar

The GST rationalisation of bidis is unlikely to have a bearing on election results in Bihar, where consumption is among the lowest in India. A Moneycontrol analysis shows the eastern state’s per capita use is just one-eighth of the national average, undermining speculation that the move was aimed at its upcoming election.

The GST Council on September 3 reduced the levy on bidis to 18 percent, while most other tobacco products were shifted to a higher 40 percent slab. At the national level, monthly per capita bidi consumption stood at 26.8 in rural areas and 11.7 in urban centres. Bihar’s averages were just 3.1 in rural and 1.5 in urban areas. Jharkhand was even lower, with barely one bidi per person per month.

By contrast, bidi use is far more entrenched in other states. Tripura leads with 95.5 bidis per person per month in rural areas and 45.5 in urban centres. Rajasthan (67.3 in rural, 20.6 in urban), West Bengal (55 and 23.8), and Haryana (51.9 and 26.4) also reported extremely high consumption.

Delhi’s urban average of 11.8 was closer to the national benchmark.

The contrast matters because bidi carries a 0.4 percent weight in India’s consumer price index—more than any other intoxicant and comparable with everyday staples such as spices and pulses.

Inflation in the category has been inching up, averaging 3.1 percent between February and July, compared with 2 percent in the previous half-year and 1.5 percent a year earlier.

States with high reliance on bidis—such as Tripura, West Bengal and Rajasthan—may see a bigger impact from the tax change than Bihar, where the habit remains marginal.