Pernod India expects Scotch prices to drop under India-UK FTA

Pernod Ricard India (PRI) has stated that the recently concluded India-UK Free Trade Agreement (FTA) is expected to make Scotch whiskies more competitively priced in the Indian market, according to media reports. The company believes that reduced import duties will translate into lower retail prices across most Indian states, making premium Scotch whiskies more accessible to consumers across the country.

The trade agreement, announced earlier this month, will see India reduce import duties on UK-origin whisky and gin from the current 150 percent to 75 percent, and further down to 40 percent over a 10-year period.

While the formal details of the agreement are still awaited, PRI has indicated that the price impact will be largely on imported liquors, with minimal effect on the pricing of India Made Foreign Liquor (IMFL), which continues to be available at lower price points.

The company also noted that final retail prices in India are influenced by state-level policies, which determine how import duties are reflected in the final consumer pricing.

Earlier, British spirits company Diageo had also welcomed the FTA, expecting a “high single-digit” reduction in consumer prices and a potential boost in sales volumes.