Black market prices for tobacco in prisons have hit $500 for a 30g pouch - five times the price of the most prized caviar available in New Zealand.
A Herald on Sunday source said prisoners at Mt Eden Prison were paying up to $15 for a single roll-up cigarette.
Prison officials intercepted two parcels of tobacco that had been sewn into a pair of slippers and people have been trying to hurl cigarettes over prison walls.
The price of contraband tobacco has doubled since the smoking ban was implemented in July. It now costs five times the amount of Caviar Osetra, which can be bought at wholesale markets for $92 per 100g.
Despite this, Corrections said the smoking ban introduced on July 1 was a success. In July and August, 353 contraband items were found in prisons and 31 inmates were caught smoking.