Aluminium shortage puts Indian brewers under pressure

India’s beer industry is staring at a major supply crunch, with a shortage of aluminium cans threatening to disrupt production and sales nationwide. According to media reports, the Brewers Association of India (BAI) has warned that the crisis could lead to a revenue loss of nearly ₹1,300 crore for the government if not addressed promptly.

The shortage stems from a new regulation mandating Bureau of Indian Standards (BIS) certification for aluminium cans, which came into effect on April 1, 2025, under a Quality Control Order (QCO). While the move aims to ensure higher quality standards, it has triggered short-term supply bottlenecks across the beverage packaging sector.

Key domestic suppliers, including Ball Beverage Packaging India and Can Pack India, are already operating at full capacity and are unable to scale up output for at least another 6–12 months until new production lines are commissioned. The situation has been further complicated by delays in imports, as BIS certification for foreign manufacturers can take several months to process.

Representing leading brewers such as AB InBev, Carlsberg and United Breweries, BAI has urged the government to defer the implementation of the QCO for imported aluminium cans until April 1, 2026. The association has also requested temporary relaxation allowing imports from suppliers who have already applied for BIS certification.

According to BAI, India’s beer sector operates more than 55 breweries, employs over 27,000 people and has invested approximately ₹25,000 crore. The ongoing can shortage, it noted, risks disrupting production across the industry and could significantly impact government excise revenues.

Industry estimates suggest that the combined loss to central and state governments could range between ₹1,200 crore and ₹1,300 crore annually if the shortage persists. The association emphasised the need for urgent regulatory flexibility to ensure uninterrupted supply while domestic manufacturers ramp up capacity over the coming year.