Are Beer Prices In India Set To Rise Due To The West Asia Conflict?

There are many people in India who enjoy a chilled glass or a can of beer. However, things may soon change. Beer in India might get more expensive, and you could also see fewer options on shelves. This is due to rising global tensions in West Asia. Read on to know more!

Beer Prices To Increase In India

Due to conflict in West Asia, beer makers across India are dealing with supply issues and rising expenses. As per Business Today, the Brewers Association of India (BAI), which represents major companies including United Breweries, AB InBev, and Carlsberg, has warned that the situation could worsen during the peak summer season. Surprisingly, these companies together sell around 85% of the beer in India.

In the past three weeks, production costs have increased. Glass bottles are about 20% more expensive. Paper cartons now cost almost double. Materials like LDPE, BOPP, and adhesives have seen a price rise of 20–25%. Freight and logistics costs have increased by over 10%. The Indian rupee has weakened by nearly 3% against the US dollar, which has made imports costlier.

Also Read: Indian Govt Reveals 4,335 Domestic & 1,187 Global Flights Cancelled Due To West Asia Conflict

Beer Production To Slow Down

Not only this, but the ongoing war has disrupted aluminium supplies from West Asia, which affects the production of beer cans. Business Today reported that manufacturers have even warned that if this continues, it could slow down production or force some plants to shut.

There is also a shortage of commercial LNG, which is impacting glass bottle manufacturers. This could lead to partial or complete shutdowns of their units, further affecting supply. Beer companies believe that shortages will become noticeable soon. Contracts between suppliers, brewers, and buyers could even face force majeure situations.

To manage losses, brewers might only supply beer in states that are OK with price hikes. Supply is expected to continue in states like Maharashtra, Goa, and Karnataka. But in states where prices are fixed and cannot be increased, companies may not find it profitable, so they might reduce or stop supplying beer there.

BAI Director General Vinod Giri has urged governments to allow price revisions. He said that if companies cannot pass on rising costs, they may reduce supplies. That could lead to lower tax collections and deeper problems for the industry.

What are your thoughts on this? Tell us in the comments below!

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