Indian spirits industry seeks equal market access in UK

Amid the recent India-UK Free Trade Agreement that slashes tariffs on Scotch whisky imports from 150 percent to 75 percent, Indian liquor producers have voiced strong concerns over continued non-tariff barriers that limit their access to the UK market.

In an interaction with a media outlet, Anant S. Iyer, Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), said that while the trade deal opens the Indian market further to British spirits, Indian-Made Foreign Liquor (IMFL) continues to face restrictions abroad. “The UK and even the EU do not allow fair imports of most IMFL products due to non-tariff barriers related to maturation and ingredients,” he added. “We only wish that the Indian government had stood firm on the issue of non-tariff barriers.”

UK regulations require a spirit to be matured for at least three years to be classified as whisky. Iyer argued this is unfair to Indian producers, given the country’s warmer climate leads to faster maturation and greater evaporation losses. “A three-year maturation in India means nearly a third of our spirit is lost. These rules force Indian companies to label their whisky as ‘Indian spirits,’ effectively excluding them from the UK market,” he said.

CIABC is urging the Indian government to seek reciprocal recognition for Indian whisky and rum classifications in the UK and EU. The industry body has also recommended a minimum import price (MIP) on bottled-in-origin Scotch to ensure British products are not dumped at artificially low prices in India.