European Alcohol Firms Seek India Import Duty Waiver
European drinks firms are seeking a 10% import duty waiver in India as the Iran war causes packaging shortages. Local supply constraints are raising costs.
A European industry lobby group representing major global beverage firms has formally requested that the government of India provide an exemption from a 10% import duty on aluminum cans and glass bottles. The Federation of European Businesses in India, whose members include Pernod Ricard, ANHEUSER-BUSCH INBEV SA/NV, HEINEKEN NV, and CARLSBERG-A, cited looming packaging shortages and supply chain disruptions triggered by the ongoing conflict involving Iran.
The request, detailed in a letter seen by Reuters, highlights that local manufacturers are unable to operate at optimal capacity, leading to constrained supplies of essential packaging materials. The industry is currently grappling with cost increases of up to 15% for raw materials like adhesives and cartons, while the Middle East crisis has further inflated the prices of labels and glass. Market data indicates that the sector is under significant pressure, as retail price adjustments in the country require government approval in approximately two-thirds of the 28 states.
