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India.com
3 days ago
- Business
- India.com
Free Trade or Colonial Bias? After India-UK FTA, Homegrown Liquor Makers Accuse British Market Of Discriminating Against Indian Brands
New Delhi: The ink was barely dry on the India-UK Free Trade Agreement (FTA) when a new unease began brewing, not in trade offices, but in the distilleries of India. A growing number of Indian liquor companies say they are feeling left out and locked out. While the FTA has opened India's gates wider for British gin and Scotch with reduced import duties, the doors to the U.K. market, they claim, remain unfairly barricaded for Indian-made spirits. At the center of the anger is the Confederation of Indian Alcoholic Beverage Companies (CIABC), a body that speaks for India's local liquor manufacturers. According to its Director General Anant S Iyer, what India removed in tariff walls, the United Kingdom has maintained in 'non-tariff barriers', rules that may not show up in price charts but block access all the same. 'The United Kingdom and even the European Union (EU) do not allow fair imports of most Indian-Made Foreign Liquor (IMFL) products into their markets due to non-tariff barriers related to maturation and ingredients. We only wish that the Indian government had stood firm on the issue of non-tariff barriers,' he said. The bone of contention is the UK's strict definition of what can be sold as whisky. The British standard mandates that whisky must be matured for a minimum of three years. This rule is applied to both domestic and imported spirits. But Iyer says what works in cold European cellars does not work in the Indian climate. 'In India, the maturation is much faster due to the tropical climate. If we keep it for three years, we lose almost one-third of the spirit to evaporation. That is a financial loss. It also changes the flavour profile. It is a punishment for making whisky in a warmer land,' he explained. Because of the three-year rule, Indian whiskies that mature faster due to heat are disqualified from calling themselves 'whisky' under British law. Instead, they must be labelled as 'Indian spirits', a description that, Iyer says, cuts them off from mainstream whisky shelves and consumer attention in the United Kingdom and Europe. 'We want to be allowed to call it Indian Whisky or Indian Rum or Indian Brandy. Let consumers decide. Let the market decide. Right now, we are kept out simply because we do not age our spirits in cold basements,' he added. The CIABC has now urged the Indian government to actively pursue the matter with the United Kingdom. They argue that without reciprocal access for Indian products, the billion-dollar export vision for the Indian liquor industry will remain out of reach. 'The government has set an ambitious target of achieving $1 billion in exports from the Indian alcobev (alcoholic beverage) industry by 2030. However, without ensuring proper market access, it will be difficult to meet this target. Though Indian whiskies, rum, gins, wines, etc. have been winning accolades globally, the lack of removal of non-tariff barriers and absence of reciprocal market access will make this export target hard to achieve,' Iyer said. There is also growing concern about what is flowing into India. While British spirits are now allowed in at lower duties, Indian manufacturers fear that Scotch whisky and other bottled-in-origin (BIO) liquors may soon dominate Indian shelves by being routed through third countries at cut prices, hurting the premium Indian market before it even matures. To counter this, the CIABC has recommended that the Indian government fix a Minimum Import Price (MIP) on such foreign products. 'The government has incorporated MIP in the India-UK FTA on rum, brandy and other liquor products. The only exception on this count being Scotch Whisky/other whiskies/Gin originating from the United Kingdom,' Iyer added. He urged the government to monitor billing data and use technology to trace each bottle from port to shelf. 'We hope the government will ensure that Scotch whisky and other BIO spirits are not dumped in India at low import prices or routed through any other country at cheaper rates. This will hurt the growth of premium and luxury Indian brands,' he said. For now, India's liquor makers are pouring their hopes into diplomatic channels. Their demands include recognition, fairness and a level playing field. 'We do not want favours. We just want the right to sell our products under the names they deserve,' Iyer concluded.
Economic Times
4 days ago
- Business
- Economic Times
Whisky Business: Indian alcohol industry flags non-tariff barriers in UK market
Scotch and British gin producers may have secured lower import duties in India, but Indian alcoholic beverage makers allege an uneven playing field when exporting to the UK, The Times of India has reported. ADVERTISEMENT Domestic liquor firms claim that non-tariff barriers in the UK and EU restrict access for Indian-Made Foreign Liquor (IMFL) products. These barriers, they say, revolve around technical norms like maturation period and ingredients, which are not aligned with Indian production conditions. 'The UK and even the European Union do not allow fair imports of most Indian-Made Foreign Liquor (IMFL) products due to non-tariff barriers related to maturation and ingredients. We only wish that the Indian govt had stood firm on the issue of non-tariff barriers,' said Anant S Iyer, director general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), told TOI. UK regulations define whisky as a spirit matured for a minimum of three years—criteria applied to both domestic and imported products. But Iyer argues the rule disadvantages Indian producers due to climate differences. 'In India, the maturation is much faster. A longer maturity period, say, three years, means that around one-third of our spirit will evaporate due to the hotter climate which will not only result in losses but also impact the quality of the product,' he said. He further added that Indian companies are unable to market their products as whisky in the UK, forcing them to label it as 'Indian spirits' instead. 'We would like to label our products as Indian Whisky or Indian Rum/Brandy and sell the same in the UK/EU and allow the market and consumer to decide.' ADVERTISEMENT CIABC has urged the Indian government to raise this 'discrimination' with UK authorities and push for a level playing field. The lobby group has also proposed a minimum import price (MIP) for Bottled-in-Origin (BIO) liquor from Scotland to prevent Scotch imports from undercutting domestic brands. (With inputs from TOI) ADVERTISEMENT (You can now subscribe to our Economic Times WhatsApp channel)
Time of India
4 days ago
- Business
- Time of India
Whisky Business: Indian alcohol industry flags non-tariff barriers in UK market
Scotch and British gin producers may have secured lower import duties in India, but Indian alcoholic beverage makers allege an uneven playing field when exporting to the UK, The Times of India has reported. Domestic liquor firms claim that non-tariff barriers in the UK and EU restrict access for Indian-Made Foreign Liquor (IMFL) products. These barriers, they say, revolve around technical norms like maturation period and ingredients, which are not aligned with Indian production conditions. Explore courses from Top Institutes in Please select course: Select a Course Category Data Science CXO Others Data Analytics Cybersecurity Product Management Project Management Degree Data Science healthcare Artificial Intelligence Leadership Digital Marketing Public Policy MBA others PGDM MCA Management Operations Management Finance Technology Healthcare Design Thinking Skills you'll gain: Data Analysis & Interpretation Programming Proficiency Problem-Solving Skills Machine Learning & Artificial Intelligence Duration: 24 Months Vellore Institute of Technology VIT MSc in Data Science Starts on Aug 14, 2024 Get Details Skills you'll gain: Strategic Data-Analysis, including Data Mining & Preparation Predictive Modeling & Advanced Clustering Techniques Machine Learning Concepts & Regression Analysis Cutting-edge applications of AI, like NLP & Generative AI Duration: 8 Months IIM Kozhikode Professional Certificate in Data Science and Artificial Intelligence Starts on Jun 26, 2024 Get Details 'The UK and even the European Union do not allow fair imports of most Indian-Made Foreign Liquor (IMFL) products due to non-tariff barriers related to maturation and ingredients. We only wish that the Indian govt had stood firm on the issue of non-tariff barriers,' said Anant S Iyer, director general of the Confederation of Indian Alcoholic Beverage Companies ( CIABC ), told TOI . by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Turkey: New Container Houses (Prices May Surprise You) Container House | Search ads Search Now Undo UK regulations define whisky as a spirit matured for a minimum of three years—criteria applied to both domestic and imported products. But Iyer argues the rule disadvantages Indian producers due to climate differences. 'In India, the maturation is much faster. A longer maturity period, say, three years, means that around one-third of our spirit will evaporate due to the hotter climate which will not only result in losses but also impact the quality of the product,' he said. Live Events He further added that Indian companies are unable to market their products as whisky in the UK, forcing them to label it as 'Indian spirits' instead. 'We would like to label our products as Indian Whisky or Indian Rum/Brandy and sell the same in the UK/EU and allow the market and consumer to decide.' CIABC has urged the Indian government to raise this 'discrimination' with UK authorities and push for a level playing field. The lobby group has also proposed a minimum import price (MIP) for Bottled-in-Origin (BIO) liquor from Scotland to prevent Scotch imports from undercutting domestic brands.
Indian Express
4 days ago
- Business
- Indian Express
Will scotch get cheaper for Indian consumers after UK trade deal? Not by much, say experts
Scotch may get cheaper, but don't expect much relief at the liquor store. Tariffs on UK imports have been halved under the India-UK trade deal, but higher state-level taxes mean consumer prices may only dip 8-10 per cent, industry experts said. On the supply side, the reduction in customs duty by half to 75 per cent may boost margins for both British distillers and Indian producers who blend imported scotch with locally made whisky, they added. 'Customs duty typically accounts for around 20 per cent of the MRP across the country, while the bulk of taxes are imposed by the states. A reduction in duty by half could bring down consumer prices only by 8-10 per cent,' an industry representative said on condition of anonymity. Under the trade deal, India will immediately reduce tariffs on scotch and blended whisky imports by half to 75 per cent, and then gradually to 40 per cent over ten years, once the deal is ratified domestically by the two countries. The revision will apply to both bottled-in-origin (BIO) and bulk imports. According to Anant S Iyer, director-general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), the tariff reduction could lead to newer scotch brands entering the domestic market with competitive pricing. 'Our fear is that a lot of new scotch brands from the UK can come in. These brands may not be famous here today, but they can come in at really aggressive prices that are comparable to Indian premium whisky. Already, some standalone importers are bringing in BIO whisky under 150 per cent duty with aggressive pricing,' Iyer said. Popular British scotch brands that could become slightly cheaper include Chivas Regal, Ballantine's, Glenlivet, Glenfiddich, and Johnnie Walker. Whisky was the UK's fifth-largest export product to India in 2024-25, valued at roughly $260 million, up 16 per cent from 2023-24. 'Import duties contribute only a fraction of the final price, with state excise, logistics, and distributor margins forming a large share of consumer cost. From a market standpoint, the FTA is more likely to influence product availability and premiumisation than spark a sudden demand surge. UK whisky makers may use this as an opportunity to expand brand presence,' said Naveen Malpani, Partner and Consumer Industry Leader, Grant Thornton Bharat. Industry expert Vinod Giri said a brand like Black Label in Delhi, priced at around Rs 3,500, may only get Rs 200-300 cheaper if the entire duty cut is passed on. While the reduction in consumer prices may not be much, British exporters and domestic producers who blend imported scotch could see their margins improve. Scotch is typically blended with Indian-made whisky in proportions ranging from 2 to 30 per cent, depending on the product's price segment. Popular whisky brands that blend imported scotch include Blenders Pride and McDowell's No. 1. 'Any duty reduction on Scotch whisky means the cost of production for Indian whisky makers who import it for blending goes down to that extent. While it's not likely to reflect in consumer prices, the fact is that if their costs go down, their bottom lines improve,' Giri said. 'Indian blenders will have savings per case. It depends on how much quantity of vatted malt scotch is used in the blends, and hence there will certainly be savings for them,' Iyer added. According to Giri, the reduction in customs duty will also result in bottled-in-India (BII) whisky becoming BIO over a period of 3-4 years. 'With standard Scotch whisky, if the entire duty cut is passed on, prices may drop by Rs 100-150 a bottle, bringing them close to BII whisky, which sells for around Rs 1,500. BII is also Scotch, just imported in bulk to avoid duties on packaging and other costs,' he said. 'But with the new duty set to drop to 75 per cent and then gradually to 40 per cent, it makes little commercial sense to bottle locally, invest in factories, and deal with operational hassles. Production costs are already lower in Scotland due to scale efficiencies, so they might as well ship scotch bottled from there and improve margins,' Giri added. 100 Pipers, Teacher's, Black Dog, and Black & White are among big brands that bottle imported scotch in India. Scotch distillers in the UK have welcomed the reduction in tariffs, which will give them greater access to the world's biggest whisky market by volume. 'The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade,' said Jean-Etienne Gourgues, Chairman and CEO of Chivas Brothers, the firm behind popular whisky brands such as Chivas Regal and Ballantine's. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
Time of India
5 days ago
- Business
- Time of India
Whisky sales: Indian liquor cos seek end of discrimination in UK
This is a representative AI image (Pic credit: Lexica) NEW DELHI: Scotch and British gin makers may have been successful in gaining lower duty access to the Indian market, but domestic players are miffed and allege discrimination against Indian brands when they ship their products to the UK. "The UK and even the European Union do not allow fair imports of most Indian-Made Foreign Liquor (IMFL) products due to non-tariff barriers related to maturation and ingredients. We only wish that the Indian govt had stood firm on the issue of non-tariff barriers," said Anant S Iyer, director general of Confederation of Indian Alcoholic Beverage Companies (CIABC) told TOI here. Norms in the UK allow a product to be classified as whisky if it has been matured for at least three years, the same yardstick that the UK applies for brands produced and sold in their country. Iyer, however, described it as unfair, arguing that in cold weather it takes time to mature. "In India, the maturation is much faster. A longer maturity period, say, three years, means that around one-third of our spirit will evaporate due to the hotter climate which will not only result in losses but also impact the quality of the product." He said that the rules force Indian companies to classify their whisky as 'Indian spirits', effectively keeping them off bounds in the UK market. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The boy meets a dog on the street - no one expected what happened next. Women's Method Learn More Undo "We would like to label our products as Indian Whisky or Indian Rum/Brandy and sell the same in the UK/EU and allow the market and consumer to decide." CIABC is petitioning that govt takes up "the issue of discrimination" with the UK govt to ensure that Indian brands, which fiercely compete with the western products here, are allowed the same opportunity abroad. The lobby group has also suggested a minimum import price (MIP) on Bottled-in-Origin (BIO) products coming in from Scotland to ensure that the Scotch whiskies are not imported to India at lower rates. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
