Imported whiskies to get cheaper by Rs 300 a bottle

“For the alcobev sector, the immediate tariff reduction on Scotch whisky and gin imports from 150% to 75%, and subsequent reduction to 40% over the decade, will open up and expand market opportunities for the industry. The deal will significantly benefit Indian consumers, as premium international spirits will become more accessible, thereby accelerating the ongoing trend of premiumisation,” said Sanjit Padhi, CEO of International Spirits and Wines Association of India (ISWAI).

According to ISWAI, India is one of the world’s largest alcobev markets and sells over 400 million cases of Indian alcoholic spirits annually. Yet imported spirits – Bottled in Origin and Bulk Bottled in India, – account for a mere 2.6% of the total market. The imported category is dominated by whisky with Scotch being around 81% of the overall imports of 10.9 million cases of alcoholic spirits.

Chivas Brothers Chairman and CEO Jean-Etienne Gourgues termed the India-UK FTA as a sign of hope in challenging times for the spirits industry. “India is the world’s biggest whisky market by volume, and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s,” Gourgues noted.

Confederation of Indian Alcoholic Beverage Companies (CIABC), an industry body of IMFL manufacturers, expressed concern about over possible ‘dumping of Scotch whiskey brands’, which have been bottled in India before the FTA.

“We hope that the government will ensure that Scotch whisky and other spirits (BIO – bottled in origin) are not dumped at low import prices or routed through any other country at cheaper rates, which would hurt the YOY growth of premium and luxury Indian brands,” CIABC Director General Anant S Iyer said.