Industry Voices

Alcobev industry awaits the formal notification of the announcement made by the GST Council on 7th October, approving exemption of ENA from GST when supplied for the manufacture of alcoholic liquors, both grain-based and molasses-based ENA will be exempted from GST.   We expect the unleashing of the export potential of Indian single malts and other innovative spirits such as gins. Reduction of the current exorbitant duty tariffs (100 percent customs duty + 50 percent Agriculture Development Cess) and conclusion of FTA discussions with the UK and EU are also expected in the near future. We welcome the new government in the states of Andhra Pradesh and Odisha. In AP, our expectations include improvement in the number of retail outlets and consumer experience, removal of discrimination towards national brands and implementation of transparent data & payment processes.   In Odisha, the EODB benchmark set by the state should continue.

Satpal Chaudhry, COO – Khoday India Ltd

I believe policies by the central govt may not be helpful for us as liquor is a state subject in India. Liquor companies should push for GST coverage on liquor. Orissa’s liquor business is already through the state government and the policy is good for liquor companies as nobody will reduce excise levies.     The Government of Andhra Pradesh will definitely change the excise policy as Mr Naidu is known for his progressive style of working. We had seen his performance during his earlier tenure. He will create an excise policy, which is friendly for liquor companies.

Ashwin Rodrigues, Secretary, Wine Growers Association of India

The past government was very supportive of the Indian wine industry, and since there will be a continuation of the government and most of the ministries, we don't see much change in our expectations or in our approach. We will continue to advocate the streamlining and harmonising of policies across states. At the same time, we will pursue our proposals with the food processing ministry and others.   Much change is needed in the operations of the wine business in Andhra Pradesh. For one, we understand that most of the major wine brands are not available there due to unfavourable conditions. For one, payments are held up for months, which puts undue pressure on companies. That needs to change. The Odisha corporation is a better run organisation and not much changes are required there. We will continue to advocate for rules which are favourable for the wine industry as well as offer to help develop the local wine industry of the state.

Vinod Giri, Director General of India – Brewers Association of India

Many key ministries, especially the ones relevant for alcobev industry such as Finance and Commerce are in custody of the same ministers. Most of the key officials also are the same and therefore, I do not foresee any major shift in the direction of policies or the position of the Government on matters on table. We expect a faster movement on resolution of outstanding GST matters on which considerable progress was made during the previous administration. The FTAs should also progress rapidly with the same administration being in place with a renewed mandate.   In Andhra the industry certainly expects major shifts. The new Government has a strong reputation for being business friendly and progressive and has already announced a review of some of the issues such as selective ordering by the corporation and alleged malpractices at the Government owned retail shops. It is positive and welcome news for the industry. In Odisha, the industry did have some issues with the policy earlier, but there was no major disconnect or misdirection in the policy. In our assessment there may be some steps here and there but nothing tectonic shifts under the new government.