Beer prices to go up in India? Europe's top brewers seek duty waiver amid package supply shortages
The Federation of European Business in India sent the letter on April 2, flagging that local manufacturers were unable to operate at full capacity, leaving companies with constrained supplies of both cans and bottles
- Apr 10, 2026,
- Updated Apr 10, 2026 11:41 AM IST
The Iran war is now threatening to empty India's beer shelves. A European industry lobby group representing some of the world's biggest drinks companies, including Pernod Ricard, Anheuser-Busch InBev, Heineken and Carlsberg, has written to the Indian government seeking a temporary exemption from a 10 per cent import duty on glass bottles and aluminium cans, as shortages begin to bite, according to a Reuters report.
The Federation of European Business in India sent the letter on April 2, flagging that local manufacturers were unable to operate at full capacity, leaving companies with constrained supplies of both cans and bottles.
A $65 billion market under pressure
The letter lays bare the strain building inside India's $65 billion alcohol industry. The Middle East crisis has pushed up costs for glass bottles, cartons and labels, and passing those costs on to consumers is far from straightforward. In roughly two-thirds of India's 28 states, retail price changes require government approval, leaving drinks companies to absorb the hit.
The industry is already facing a 15 per cent increase in raw material costs, including cartons and adhesives. The Federation's letter requested "a temporary customs duty waiver on packaging imports for aluminium cans and glass bottles," warning that sourcing alternatives from other countries could add 30 per cent to the cost of these materials.
India's commerce and finance ministries did not respond to Reuters queries. The Federation, along with Pernod Ricard, AB InBev, Heineken and Carlsberg, also declined to comment or did not respond to requests.
Beer industry sounds the alarm
The Brewers Association of India has separately written to the government, also seeking duty exemptions on imported cans and bottles. Beer companies have already applied for price increases in several states, but authorities "are reluctant to allow cost increases to be passed on to end users," the association's letter said.
The association also pointed to the fiscal stakes involved; the industry contributes $5.52 billion annually in taxes, and any supply shortages could directly dent government revenues.
Vinod Giri, the association's director general, was direct about the situation. "The war has brought down the domestic supply of glass bottles and aluminium cans substantially, and the beer industry must import them if it has to meet the domestic demand," he said.
"Price of glass and cans has also risen substantially in the international market, which has further increased for Indian importers due to the fall in Indian rupee."
(With inputs from Reuters_
The Iran war is now threatening to empty India's beer shelves. A European industry lobby group representing some of the world's biggest drinks companies, including Pernod Ricard, Anheuser-Busch InBev, Heineken and Carlsberg, has written to the Indian government seeking a temporary exemption from a 10 per cent import duty on glass bottles and aluminium cans, as shortages begin to bite, according to a Reuters report.
The Federation of European Business in India sent the letter on April 2, flagging that local manufacturers were unable to operate at full capacity, leaving companies with constrained supplies of both cans and bottles.
A $65 billion market under pressure
The letter lays bare the strain building inside India's $65 billion alcohol industry. The Middle East crisis has pushed up costs for glass bottles, cartons and labels, and passing those costs on to consumers is far from straightforward. In roughly two-thirds of India's 28 states, retail price changes require government approval, leaving drinks companies to absorb the hit.
The industry is already facing a 15 per cent increase in raw material costs, including cartons and adhesives. The Federation's letter requested "a temporary customs duty waiver on packaging imports for aluminium cans and glass bottles," warning that sourcing alternatives from other countries could add 30 per cent to the cost of these materials.
India's commerce and finance ministries did not respond to Reuters queries. The Federation, along with Pernod Ricard, AB InBev, Heineken and Carlsberg, also declined to comment or did not respond to requests.
Beer industry sounds the alarm
The Brewers Association of India has separately written to the government, also seeking duty exemptions on imported cans and bottles. Beer companies have already applied for price increases in several states, but authorities "are reluctant to allow cost increases to be passed on to end users," the association's letter said.
The association also pointed to the fiscal stakes involved; the industry contributes $5.52 billion annually in taxes, and any supply shortages could directly dent government revenues.
Vinod Giri, the association's director general, was direct about the situation. "The war has brought down the domestic supply of glass bottles and aluminium cans substantially, and the beer industry must import them if it has to meet the domestic demand," he said.
"Price of glass and cans has also risen substantially in the international market, which has further increased for Indian importers due to the fall in Indian rupee."
(With inputs from Reuters_