West Asia conflict: Liquor industry seeks price revision

The Indian liquor industry has flagged a rise in input and logistics costs due to the West Asia conflict and is seeking price revisions from state governments.

The Confederation of Indian Alcoholic Beverage Companies (CIABC) has urged state governments to consider immediate price revisions for Indian Made Foreign Liquor (IMFL).The industry body pointed out that volatility in global crude and fuel prices, combined with major disruptions in shipping routes, has led to a broad-based increase in costs across various sectors in India.

“Timely and calibrated price adjustments are essential to ensure continued investments, maintain stable supply chains, and support the long-term sustainability of the sector,” said Anant S Iyer, Director General, CIABC, in a statement.

“In addition to higher fuel and transportation costs, manufacturers are also witnessing significant cost escalations in packaging materials such as PET, aseptic formats, and other polymer-linked inputs, all of which are closely tied to global energy price movements. These increases are cumulative in nature and are adding to the overall cost of production,” the statement added.

The Brewers Association of India (BAI), which represents the country’s largest beer makers, has warned that rising costs due to the war in the Middle East may make beer supplies unviable in some states.

“The current crisis highlights the need for a flexible and pragmatic policy environment. Holding prices back when costs are rising benefits no one. Inability to pass on cost increases disincentivises suppliers from maintaining adequate supplies, especially during periods of shortage when rationing may become necessary. Reduced supplies would mean lower tax collections for the government,” said Vinod Giri, Director General, BAI in a statement.

The BAI has warned that beer makers may be forced to prioritise supplies to states that offer greater pricing flexibility — such as Maharashtra, Karnataka, and Goa — where they can increase prices and remain viable. “Brewers may find it difficult to maintain supplies in states that do not allow price increases and where there is little headroom to absorb the rising costs,” the statement said.