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India: Indian brewers urge harmonization of imported beer duties
The Brewers’ Association of India, which represents producers that account for more than 85% of beers sold in India, has urged the government to harmonise beer levies between locally produced and imported beverages, AsiaBrewersNetwork reported on April 23.
Currently domestic brewers pay 150% plus 10% duty, whereas imports from Bhutan and Nepal face just 65% excise and no customs levy.
The disparity has allowed importers to undercut Indian brands by selling below the maximum retail price, the association said in a letter to state authorities. Moreover, Delhi’s failure to impose a countervailing duty has lost the government about INR20 (US$0.24) per bottle in tax revenue on imported beer, the letter added.
“Using the higher margin to put in trade and brand pushing, several brands from Bhutan are flooding the Delhi market,” claims Vinod Giri, the director general of the BAI, in its letter to the government. “Many of these brands are unknown, unheard of, and do not sell anywhere else in India. Very little is known of the breweries and quality standards followed in their production.”
The association warned that continued discrimination against domestic producers could drive further investment abroad, undermining the government’s Make in India initiative and weakening local industry. The higher margins enjoyed by importers enabled them to aggressively market and utilise brand-pushing strategies that erode the competitiveness of home‑grown labels.
To level the field, the association recommends aligning excise duties by imposing a 150% levy on imports, to match the rate applied to locally produced brews. Such a move would equalise government earnings from both sources; restore parity in retail pricing and force importers to reduce supplier prices, curbing excess margins that fuel the influx of overseas labels, the letter said.
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