Spirits Under Siege: Rising Costs Prompt Call for Price Hike

Alcoholic beverage makers in India, including key industry bodies CIABC and BAI, are urging state governments for price hikes to counteract rising production costs due to supply chain disruptions from the West Asia crisis. They seek a 15-20% increase and interim relief measures to manage increasing input costs.

Indian alcoholic beverage producers are pushing for price increases to tackle escalating production expenses caused by supply chain disturbances attributed to the West Asia crisis. Both CIABC and the Brewers Association of India, representing major segments of the industry, have appealed to state governments for revisions in liquor prices, encompassing IMFL, wine, and beer.

The Brewers Association of India has urged for a 15-20% price hike in its communications to state governments, aiming to offset burgeoning input costs. Vinod Giri, Director General of BAI, emphasized that the conflict has sharply raised costs across various production materials, including a significant 20% rise in glass bottle prices.

With commercial LNG shortages impacting glass bottle manufacturers and aluminum supplies from the Middle East affected, the beer industry is facing prolonged supply challenges. The industry also seeks reductions in manufacturing levies to cushion the impacts of increasing costs, as highlighted by CIABC and its representatives.