Leading European alcohol companies, including Heineken, Carlsberg, Pernod Ricard and Anheuser-Busch InBev, have approached the Indian government seeking relief from a 10% import duty on glass bottles and aluminium cans.
The request has been made through the Federation of European Businesses in India, which highlighted that the industry is facing a growing supply shortage and rising costs. According to the group, local manufacturers are struggling to meet demand due to increasing production expenses.
India’s alcohol market, estimated at around $65 billion, is currently under pressure as the cost of essential packaging materials like glass bottles, cartons, and labels continues to rise. One of the key reasons behind this surge is the ongoing West Asia conflict, which has disrupted global supply chains.
Companies say it is difficult to pass these higher costs on to consumers because alcohol prices in many Indian states require government approval before any increase.
Reports suggest that raw material costs have risen by nearly 15%, further straining the industry. Despite these challenges, the sector is still expected to grow steadily in the coming years.
Amid fears of shortages, some Indian liquor companies are also exploring imports from Southeast Asia. At the same time, the Brewers Association of India has urged state governments to allow price hikes so that companies can manage rising costs more effectively.
Overall, the industry is seeking policy support to navigate supply disruptions and maintain stable operations in a challenging environment.
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