"Dodgy tobacco rife across Rotherham"

They described the market for dodgy tobacco and cigs as "rife" in the borough and told how it impacts on their businesses.

HM Revenue and Customs estimates up to £2 billion a year is lost in tax through smuggling - and livelihoods are hit at stores which follow the rules.

Adeed Kassim, who runs the Millmoor Store in Masbrough, said: "It does have a big effect on us. Customers will come in and ask for the cheap cigarettes or tobacco, and we say that we only do UK duty paid.

"So they go to places they know sell the other, where they can get 50g of tobacco for £3. 

"I've had people come back to our shop after buying illegal tobacco somewhere else and it was rotten but they couldn't get a refund. I advise them to only buy UK duty tobacco."

Mr Kassim called for HMRC to carry out more check ups on small shops - and severely punish owners selling illegal products.

He said: "They should have their officers going in and recording conversations with cameras.

"Shops that are breaking the rules should be banned from selling tobacco. I think that would make other shopkeepers take notice and realise they have to take it more seriously."

About nine million adults in the UK are smokers - including nearly one in five in Rotherham.

Raids at three shops - in the town centre, Bradgate and Eastwood - uncovered 10,000 cigarettes worth £2,000 on October 4, with stashes hidden in secret compartments.

And tobacco firm JTI has reported that 61 per cent of rolling tobacco bought in the Yorkshire region is non-UK duty paid.

Terry Fieldhouse, who owns TC's Minimart in Catcliffe, blamed high prices for legal products and restrictions like plain packaging for fuelling the black market.

"Illegal tobacco is very rife," he added. "Brinsworth and Catcliffe is a high unemployment area, everyone is trying to save a bob or two, so people buy illegal tobacco.

"Because customs and excise are more interested in the big boys, the smaller places get away with it more.

"They should look at the small places and when they catch someone that's doing it, shut them down rather than just giving them a slap on the wrist. 

"For businesses like us, it's getting harder and harder to keep going. The minimum wage is going up, bills are going up, but takings are down."

Steve Wilkins, JTI's anti-illicit trade director, said: "Smokers buying cheap, fake cigarettes and tobacco may be getting more than they bargain for. 

"Many of these fake imitations sold by criminals have been found to contain asbestos, mould, dust, dead flies and even rat droppings. 

"And the availability of cheap, illegal tobacco across towns and cities in the UK is damaging communities. 

"Along with retailers, suppliers and the Government, we all have a role to play to combat this issue."

Roger Critchell, Crimestoppers director of operations, said: "As a crime-fighting charity, Crimestoppers has a responsibility to tackle all types of crime, and working alongside JTI, we hope to be able to clean the streets of illicit tobacco.

"The link this trade has to serious and organised crime is very real, and with the help of information from the public on those supplying and selling these fake products, our aim is to ensure your community is a safe place to live."