I.P. Suresh Menon, Secretary-General of ISWAI, stated in an interview with ThePrint that the organization is looking for an immediate drop in customs duty on imported spirits from 150% to 75% and to a final rate of 30% over a period of three years.
Digital Desk: One of the main demands being made by the International
Spirits and Wines Association of India (ISWAI), a global organization for the
liquor industry, is an immediate reduction in tariffs and quicker imports of
British alcohol into Indian markets under the proposed Free Trade Agreement
(FTA) between India and the UK.
The India-UK Free Trade Agreement (FTA), about which negotiations have
been ongoing since January, calls for an immediate reduction in the customs
duty on imported booze. ISWAI, which represents international brands including
Bacardi, Diageo-United Spirits, and Pernod Ricard, is pushing for this.
Due to this, Scotch whisky entering India can become much more
affordable. Currently, all imported alcoholic beverages, including spirits and
wines, face a 150 percent customs charge, one of the highest in the world.
I.P. Suresh Menon, Secretary-General of ISWAI, stated in an interview
with ThePrint that the organization is looking for an immediate drop in customs
duty on imported spirits from 150% to 75% and to a final rate of 30% over a
period of three years.
"The threshold price for bottled in origin (BIO) alcohol should be
$24 for a case of 12 bottles, each holding 750 ml. Menon continued, "It
should cost $2.2 per litre of pure alcohol in terms of quantity."
BIO is alcohol that was manufactured overseas and then bottled there.
Alcohol that has been imported in bulk and bottled in India is known as
"bottled in India" (BII). Many BIO and BII Scotch brands are owned by
multinational companies like Diageo.
Since "The Indian market has been safeguarded for the longest
period," said Menon, ISWAI is requesting an immediate tariff cut followed
by a progressive reduction to 30% rather than just a phased reduction.
Why haven't Indian products made any progress in the UK, where 60% of
the market favours 'white' liquor if Indian products are excellent enough to
compete with foreign players? What vodka or gin product from India has gained
traction in the UK? "After all, there are no maturation limitations on gin
and vodka," he continued.
London has stated that lowering tariffs on exports of completed goods,
such as Scotch whisky and automobiles built in the UK, is a
"priority" under the India-UK FTA.
The FTA, for which four rounds of negotiations are now complete, is
anticipated to be signed by the deadline of Diwali, which was established by
both India and the UK during British Prime Minister Boris Johnson's visit to
India in April.
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