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Odisha Government Announces Statewide Ban on Tobacco and Nicotine Products

Written by: Team Angel OneUpdated on: 23 Jan 2026, 5:27 pm IST
Odisha’s revised order bans tobacco and nicotine products statewide, aiming to remove loopholes in earlier restrictions.
Odisha Government Announces Statewide Ban on Tobacco and Nicotine Products
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The Odisha government has issued a fresh notification banning the manufacture, processing, packaging, storage, transport, distribution and sale of gutkha, pan masala and all products containing tobacco or nicotine, as per news reports.  

The order, released by the Health and Family Welfare Department, replaces a January 2013 notification and aims to clarify enforcement provisions. 

Earlier restrictions were interpreted narrowly, allowing products to be sold in separate components or under different names. The updated notification seeks to address those gaps and standardise enforcement across the state. 

Ban Covers Packaged and Unpackaged Products 

The prohibition applies to both packaged and unpackaged products, including items sold separately but intended to be mixed.  

It covers all chewable food products containing tobacco or nicotine, whether flavoured, scented or mixed with additives, and products marketed in any form or name. 

The notification has been issued under the Food Safety and Standards Act, 2006, and Regulation 2.3.4 of the Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations, 2011.  

Products covered include gutkha, pan masala, zarda, khaini and other oral tobacco products. 

Compliance with Court and Regulatory Directions 

The order follows directions from the Supreme Court and the Food Safety and Standards Authority of India requiring states to ensure compliance with the nationwide ban on gutkha and pan masala.  

The notification states that products containing tobacco and nicotine are widely available and pose risks to public health. 

Central Tax and Duty Measures from February 

Separately, the central government has notified tax changes effective February 1. Pan masala, cigarettes and tobacco products will attract a Goods and Services Tax (GST) rate of 40%, while beedis will be taxed at 18%. A Health and National Security Cess will be imposed on pan masala, and tobacco products will face additional excise duty. 

The Finance Ministry has also notified new rules for chewing tobacco, scented tobacco and gutkha packing machines for capacity determination and duty collection. The existing GST compensation cess will be discontinued from the same date. 

Usage Data and Health Context 

As per news reports, state officials cited links between tobacco and oral cancer, throat cancer and other illnesses. Children and young people were identified as vulnerable groups.  

The Global Adult Tobacco Survey shows more than 42% of people in Odisha use smokeless tobacco, nearly double the national average. 

Read More: Odisha Clears ₹55,783 Crore Industrial Projects, Creating Over 14,500 Jobs 

Conclusion 

The revised notification seeks to close enforcement gaps, align state rules with national directives and complement upcoming tax and regulatory changes affecting tobacco and related products. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Jan 23, 2026, 11:57 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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