Smuggled cigarettes in Madrid: from €3.50 down to €1.50 a pack

Smuggled tobacco in Madrid: Russian packs sell for €3.50 at street markets and Polish ones for €1.50 at the Rastro flea market. A look at the price map of the black market.

English · Original discussion in Spanish · Published

Smuggled cigarettes in Madrid: from €3.50 down to €1.50 a pack
Smuggled tobacco in Madrid: the real price map

In Madrid you can buy smuggled tobacco. It is not a bar-room rumour: it is a practice with its own prices, channels and even geography. The range known to those in the loop runs from €3.50 for a Russian-origin pack sold at a street market to the €1.50 asked for a Polish brand on the outskirts of the Rastro flea market. In between, there is the €20 carton of rolling tobacco offered by sailors from Asian cargo ships when they dock, or the €11 per carton someone remembers paying a waitress who brought it in. All of it below the €3.50 that Austin costs at a Spanish tobacco shop (estanco), the cheapest brand on the legal market.

The question that opens the topic — where do you buy it — has an awkward answer: in places nobody will put in writing. Neither Chinese bazaars nor neighbourhood shops will admit to it. The advice most often repeated is to ask someone you trust: your partner, a neighbour, the waiter at your usual café. The most concrete tip that comes up is the Rastro: light a cigarette in the area and wait for someone to approach with an open bag.

The prices circulating in the tobacco black market

The most frequently cited figure is the €3.50 pack, Marlboro or Winston, labelled in Russian. Whoever bought it says it tastes fine and nothing seems off. The contrast with the tobacco shop is more than double: Austin, the cheapest tobacco on the legal market, comes in at €3.50 — exactly the same price as the smuggled Russian pack. The difference only shows up when you go down in brand or channel.

That is where the testimony of someone who smoked Russian tobacco for a while comes in: he describes it as "very harsh" and remembers paying €11 for a carton of Marlboro, just over a euro a pack. That price, he warns, is from years ago. Set against the current €3.50 for a single pack, it shows the black market's own inflation.

The Rastro lead is more precise. On the outskirts, in the area known as "Esquinera", a seller offers Austin packs at €1.50. The packaging was neither Spanish nor counterfeit: judging by the lettering, Polish. In other words, tobacco legal in its country of origin, brought into Spain without going through the tobacco shop. The health warning was there, but it was not the Spanish one.

Why don't you find smuggled tobacco in Chinese-run shops?

Because the channel is not established retail. Those who have asked at the bazaars get nowhere. The answer they receive is that smuggled tobacco is no longer worth bringing in: drugs pay better. And what circulates, in many cases, are Chinese counterfeits, not genuine tobacco from another country.

The other channel is maritime. In a city with a commercial port, sailors on Asian cargo ships sell their crew tobacco ration as soon as they set foot ashore. The standard price quoted is €20 per carton of rolling tobacco, always second- or third-tier brands. It costs them nothing: it is their allowance, and those who don't smoke make a profit. Madrid, in the centre of the peninsula, has no such option.

Then there is the alucinación to Andorra every couple of months, or asking someone flying out to pick some up at duty free. And a warning that hangs over the whole topic: the haematology unit waits at the end of the road.

The institutional response: seizure, auction and the tobacco shop

There was a time when seized tobacco — confiscated by the Guardia Civil (Spain's paramilitary police) — was auctioned off and ended up being sold in tobacco shops. It is the precedent cited to explain that the legal and illegal circuits were not always separate. Today the route is different: the tobacco shop, with its fixed price, or smuggling, with its own.

The legal warning is the one least heard in the conversation: buying smuggled tobacco is not a grey area, it is an offence. And the health warning is no small matter either: unregulated tobacco passes through storage and transport with no guarantees. Whoever consumes it takes on a risk that is not on the label.

With all this, the prediction is the usual one: as long as the legal price stays above €3.50 and the illegal one hovers around a euro and a half, the black market will have customers. Whether the gap narrows or widens depends on police pressure and on how much the tobacco shop raises its prices. Neither variable invites optimism.

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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (24 replies).

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