Global Spirits Lobby Urges India to Waive Import Duties Amid Shortages

A European industry group, including major beverage companies like Heineken, is urging India to lift a 10% import duty on glass bottles and aluminum cans. This request comes in response to shortages and rising costs linked to the Iran conflict, impacting India's alcohol market.

A European industry lobby group, representing giants like Pernod Ricard, Anheuser-Busch InBev, Heineken, and Carlsberg, has urged India to exempt a 10% import duty on glass bottles and aluminum cans due to fear of shortages sparked by the Iran conflict, as per a letter obtained by Reuters.

The Federation of European Business in India appealed to the government on April 2, citing supply constraints in the $65 billion alcohol market due to local manufacturers operating below capacity. Prices of glass bottles, cartons, and labels are soaring, and passing on these costs to consumers is challenging, needing government nods in a majority of states.

The letter underlined the immediate need for a temporary customs duty waiver on packaging imports, estimating that sourcing from alternative countries could surge industry costs by 30%. Indian ministries have yet to address these concerns as the alcohol market braces for a projected annual growth of 8% through 2033.