India Import Duty Waiver Request by European Beverage Lobby

A European industry lobby group, the Federation of European Businesses in India, representing major beverage companies including Pernod Ricard, AB InBev, Heineken, and Carlsberg Group, has requested the Indian government for a temporary exemption from a 10% import duty on glass bottles and aluminum cans. This plea is driven by fears of packaging shortages and rising costs, triggered by the Iran conflict which has disrupted supply chains and increased raw material prices. Local manufacturers in India are unable to operate at optimal capacity, further constraining supplies. The Indian alcohol market is already facing up to a 15% cost increase, and the fall in the India===Indian rupee has made imports more expensive. Beverage companies find it difficult to pass these increased costs to consumers due to government approvals required for retail price changes in many Indian states. The Brewers Association of India has also sought price increases. The situation is compounded by India's reliance on gas for industries like glass manufacturing, with recent liquefied natural gas imports at a low. A two-week ceasefire between the United States and Iran has been reached, but its impact on shipping routes like the Strait of Hormuz is yet to be seen.