The Federation of European Businesses in India wrote to the Indian government on April 2 highlighting that companies' can and bottle supplies were constrained as local manufacturers were not able to operate at optimal capacity.
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A European industry lobby group, whose members include Pernod Ricard, Anheuser-Busch InBev, Heineken and Carlsberg, has asked India for an exemption from a 10% import duty on glass bottles and aluminum cans, amid shortage fears triggered by the Iran war, a letter, seen by Reuters, shows. The letter highlights pressures in India's $65 billion alcohol market which is facing higher costs for glass bottles, cartons and labels as a result of the Middle East crisis. And in India it is more difficult for drinks companies to pass this on to customers as retail price changes require government approvals in around two-thirds of India's 28 states. The drinks industry in the country is already facing an up to 15% cost increase due to higher prices of raw materials like cartons and adhesives. The Federation's letter requested "a temporary customs duty waiver on packaging imports for aluminium cans and glass bottles," adding that exploring alternative sourcing options from other countries ...