Indian Liquor Companies Allege Unfair Treatment in UK Market

Following the recent India-UK Free Trade Agreement (FTA), scotch and British gin makers have secured lower import duties in India. However, Indian liquor companies are raising concerns over what they describe as discriminatory practices against homegrown brands in the UK.

Non-Tariff Barriers Hinder Market Access

Indian companies argue that the UK government has imposed non-tariff barriers, such as maturation and ingredient requirements, that unfairly restrict the entry of Indian-Made Foreign Liquor (IMFL) products into the UK and EU markets. These restrictions, they claim, result in negligible sales and ineffective operations abroad.

Call for Government Intervention

The Confederation of Indian Alcoholic Beverage Companies (CIABC) is urging the Indian government to address these issues with the UK, emphasizing the need for equal market access for Indian brands. With ambitious export targets set by the government, removing these barriers is seen as crucial for achieving the $1 billion alcobev industry export goal by 2030.

Proposal for Minimum Import Price

To protect the domestic industry, CIABC has also recommended the imposition of a minimum import price (MIP) on Bottled-in-Origin (BIO) products from Scotland, aiming to prevent the dumping of Scotch whisky at low prices in India.