Margins on cigarettes

The wholesale price (price at the last level distributer, those guys who roam around on mopeds with stacks of cigarette boxes on their carriers) of a packet of Wills Navy Cut is Rs 36.  The retail price is Rs 40 (printed on the box).  The retailer’s markup is thus 4/36 =11%.  This is huge (in relation to what?).  Just seems huge to me.

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