Liquor industry body seeks inflation-linked pricing in India

The International Spirits and Wines Association of India (ISWAI) has approached regulators with a proposal to consider an inflation-linked supplier pricing model for alco-beverages. The industry body underlines that the inflation-pricing model will likely ensure transparency and a consistent approach towards state-supplier pricing.

The alcobev lobby said that the margins of manufacturers were shrinking amid high discriminatory taxes, rising inflation and high import tariffs. It sought urgent attention towards high excise duties that account for nearly 70 to 80 percent of the maximum retail price of liquor in India — the highest price that can be charged for it.

According to the industry body, as inflation rises, India’s alcoholic beverage sector faces significant challenges amid rising production costs, raw material costs, and very high import duties. A surge in glass prices and packaging costs further contributed to the excise duty, it observed,

It urged regulators to rationalise ad hoc levies and taxes imposed by state governments and use operational technology for ease and approvals.