Import duty cuts on wine in FTAs may hurt local makers: CIABC
Alcoholic beverage maker's body CIABC on Friday said any import duty cuts in future trade deals on wine could hurt the domestic makers, as concessional tariffs on imported spirit from the EU, US, Australia and New Zealand may flood the Indian market. The Confederation of Indian Alcoholic Beverage Companies (CIABC) also suggested the government to impose a minimum import price clause to prevent inbound shipments of low-cost and low-quality bottled spirits, bulk and bottled wines.
ADVERTISEMENT It added that the duty reduction agreed by India on Scotch whisky under the free trade agreement with the UK may impact the domestic premium category whisky brands due to the likely influx of lower-priced Scotch whiskies.
As per the agreement, India will reduce duty on UK whisky and gin from 150 per cent to 75 per cent and further to 40 per cent in the tenth year of the deal.
"If similar duty concessions are granted on other spirits, including wines under future FTAs with wine-producing countries such as those in the EU, USA, Australia and New Zealand it could place undue pressure on domestically produced quality wine brands by opening the Indian market to lower-priced wine imports," CIABC director general Anant S Iyer said. India is not providing any duty concessions on British wines and is offering only limited import duty benefits on UK beer under the free trade agreement between the two countries. India has given the duty concession on wines to Australia under a trade pact, which came into force on December 29, 2022. In that deal, tariffs on premium imported wine were reduced from 150 per cent to 75 per cent.
The main wine-producing states include Maharashtra and Karnataka.
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