Could Beer Get More Expensive In India As The Alcohol Industry Seeks A Price Hike?

Alcohol might soon get a little more expensive in India. The Brewers Association of India has now asked state governments to allow suppliers to increase alcohol prices by 15-20% to offset the impact of rising production costs. This means that your bottle of chilled beer can get a little pricier if the price hike is approved. Here’s what we know so far.

Alcohol Prices Might Soon Increase in India

According to a report by The Hindu, alcohol manufacturers are facing difficulty with rising can and bottle costs due to supply chain disruptions triggered by the West Asia crisis. To offset that, the alcohol industry is now asking state governments to allow a price hike of 15-20%.

The Confederation of Indian Alcoholic Beverage Companies and the Brewers Association of India have urged revisions in the prices of Indian Made Foreign Liquor (IMFL), wine and beer products. They believe that a small hike in prices will provide relief to manufacturers and make it easier for them to cope with rising production costs.

Also Read: Why Are European Alcohol Brands Like Heineken & Carlsberg Seeking 10% Import Duty Relief From India?

West Asia Crisis Has Impacted The Manufacturing Costs

According to The Hindu, the ongoing tensions in West Asia have triggered a sharp increase in costs across various categories. Prices of glass bottles have increased by around 20%, while the cost of paper cartons has increased by almost 100%. According to India.com, even after paying higher prices, manufacturers are not receiving bottle supplies on time. 

In India, nearly 80% of beer is sold in glass bottles. Due to the crisis in West Asia, producing glass in the country has become expensive. Plus, there is also a shortage of aluminium for cans. Freight and logistics costs have also increased by 10%, creating pressure on alcohol makers in India.

Also Read: From Ready-To-Serve Shots To Limited-Edition Spirits, 12 New Alcohol Launches In India To Try

So, if the government approves this hike, alcohol prices in India could get a little more expensive. What are your opinions on this situation?

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