Background: The consumption of tobacco in low-income countries is linked to poverty and malnutrition, particularly in India, where 14% of the population suffers from undernourishment. This study aims to assess the opportunity costs of tobacco expenditure by quantifying nutritional losses and potential enhancements in household-level food energy status if funds allocated for tobacco were redirected towards food consumption in all Indian states. Database and Methodology: This study is based on secondary data obtained from NSSO 68th Round, 2011–12. The analysis involves the calculation of the costs of tobacco products along with essential cereals and proteins in order to assess the nutritional deficiencies experienced by households in different states. The National Institute of Nutrition's recommended “My Plate” per day food requirements in 2020, and calorie requirements for males and females as recommended by Recommended Dietary Allowance (RDA), 2020 were considered to calculate the opportunity cost of tobacco expenses. Results: Tobacco accounts for 3.6% of food expenditure in rural India and 2.9% in Urban India. Highest tobacco expenditure as proportion of food expenditure in rural India was found in Rajasthan (7.5%), Maharashtra (5.4%), North-eastern states (4.9%) and Haryana (4.8%) while Madhya Pradesh (3.5%), Maharashtra (3.4%), Rajasthan and North-east (3.3%) have the highest proportion in urban India. Conclusion: The findings suggest that reduction of tobacco expenses and proper re-allocation of resources will facilitate improvement and optimization of tobacco prevention and control strategies.
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