Good news for consumers, domestic alcohol firms unhappy

CONSUMERS OF scotch whisky and gin may find their favourite brands becoming cheaper, thanks to the India-UK FTA which will lead to import duty on them being halved to 75% from 150%.

- VIVEAT SUSAN PINTO

The levy will subsequently be cut to 40% in a decade, according to the contours of the deal.

While the tariff cut is expected to benefit both consumers and premium alcohol firms such as United Spirits and Allied Blenders and Distillers (ABD), domestic alcohol companies such as Radico Khaitan fear the move could impact their business. Shares of several Indian liquor manufacturers, including Som Distilleries, Radico Khaitan and Piccadily Agro Industries, fell up to 5% on Wednesday, a day after the India-UK FTA was announced.

The Confederation of Indian Alcoholic Beverage Companies (CIABC), which represents these firms, said the interests of the domestic alcohol industry were not reflected in the trade deal.