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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