Indian alcohol industry seeks price hikes amid rising costs from Middle East conflict
Indian brewers and liquor firms push for price increases as geopolitical tensions drive up raw material, packaging, and logistics costs, threatening industry sustainability.
INDIA – India’s alcoholic beverage industry has warned of potential disruption as geopolitical tensions in the Middle East continue to drive up input costs, prompting calls for urgent price revisions.
Two of the country’s leading industry bodies, the Confederation of Indian Alcoholic Beverage Companies (CIABC) and the Brewers Association of India (BAI), have formally urged state governments to approve price hikes to offset rising expenses across the value chain.
The CIABC has requested an increase of Rs 100–150 (US$1.06-1.60) per 9-litre case for Indian Made Foreign Liquor (IMFL), depending on the product segment and packaging specifications.
“We are seeking a price increase in the range of Rs 100 to Rs 150, depending on the segment,” said Anant S. Iyer, Director General of CIABC.
In a parallel move, the BAI, which represents major brewers including United Breweries, AB InBev, and Carlsberg, has proposed a price increase of Rs 25–30 (US$0.27-0.32) per case of beer (12 bottles of 650 ml).
According to the BAI, the ongoing conflict has significantly impacted production costs over the past three weeks.
“Glass bottle prices have risen by approximately 20%, paper cartons have increased by almost 100%, and costs of materials have gone up by 20–25%. Freight and logistics costs have also risen by 10%,” the association said.
It added that glass bottle supplies have been affected by LNG shortages, while aluminium shortages are impacting the availability of cans.
BAI Director General Vinod Giri warned that the industry is facing mounting financial pressure. “Beer companies are in a loss in many states. They will not survive if the prices are not increased,” he said, urging both the government and consumers to share the burden.
The industry bodies said the surge in costs is linked to disruptions in global supply chains, driven by rising crude oil prices, energy costs, and shortages of key industrial inputs.
Giri called for immediate government action, stating: “I hope the government will take a decision in this regard at some point, but that must be immediate and now. So we are requesting the state governments to help us.”
The alco-beverage industry contributes nearly Rs 3.5 lakh crore annually to government revenues, underscoring its economic significance. Industry representatives maintain that timely policy support is essential to sustain operations amid escalating cost pressures.
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