What they are smoking actually looks like a large form of a beedi (probably home made as commercially made beedies are much thinner), which is a cigarette made in India by wrapping tobacco flakes inside a tendu leaf and tied with a cotton string. I've smoked beedies before and the leaf gives a nice flavor to the otherwise crappy tobacco. They are way more unhealthy than regular cigs though. More of all the bad stuff like nicotine, tar and carbon monoxide. Much cheaper than regular cigs but taxed and regulated the same.