Gas Crisis in India Could Leave Breweries High and Dry

Global brewers in India face price hikes and supply disruptions due to a gas shortage influenced by the Iran war, affecting bottle production and import delays for aluminium. As prices for glass and packaging materials rise, brewers seek price increases to sustain operations amidst regulatory challenges in India's tightly controlled alcohol sector.

Global brewers operating in India are facing significant challenges as a gas shortage sparked by the Iran war threatens to increase costs and disrupt supplies. As natural gas prices soar, so do the costs of glass bottles and shipping, critical for beer production.

India, the world's fourth-largest natural gas importer, finds itself particularly vulnerable due to heavy dependence on the Middle East, sourcing about 40% from Qatar. Iranian attacks have already disrupted Qatar's exports, further tightening gas availability for Indian manufacturers.

In response, the Brewers Association of India has noted a 20% spike in glass bottle prices, alongside doubled paper carton rates. The association is now pushing for price increases in the range of 12-15% to sustain their operations, as India's alcohol sector grapples with strict regulatory frameworks.

(With inputs from agencies.)