Following the government’s decision to reduce customs duty on bourbon whisky from 150 per cent to 50 per cent, the Indian alcoholic beverage industry called for the withdrawal of all state-level excise concessions on imported liquor. According to industry experts, this duty reduction could negatively impact domestic spirits and wine producers.
The duty cut was part of broader tariff reductions aimed at improving trade relations with the United States ahead of Prime Minister Narendra Modi’s visit.
ALSO READSmall cities see surge in sales of gift items in valentine’s week
Concerns over imported liquor
The Confederation of Indian Alcoholic Beverage Companies (CIABC) has urged the government to implement strong measures to prevent the dumping of imported spirits and to negotiate better market access for Indian products. Indian whisky, for instance, faces trade barriers in the UK due to a mandatory three-year maturation rule, which the industry argues is unfair, given India’s hotter climate accelerates maturation, reports Indian Express.
Anant S Iyer, Director General of CIABC, stated, “The government must safeguard the interests of Indian liquor manufacturers. We have asked states to withdraw excise concessions on imported liquor, as lower customs duties will further impact Indian producers.”
ALSO READIndia cuts customs duty on Bourbon Whiskey to 50%, other spirits remain at 100%
While not opposed to import duty reductions, the industry has requested a phased implementation over ten years. “Western markets should recognise Indian whiskies on par with global products,” Iyer added, warning that cheap imports could threaten India’s premium spirits and wine sector.
» Read More
