A 15% to 40% price drop in select imported liquor brands across Bhopal following tariff cuts under the India-UK Free Trade Agreement (FTA) has raised major concerns among Indian alcoholic beverage manufacturers. Domestic producers caution that cheaper foreign spirits could place premium Indian-Made Foreign Liquor (IMFL) and wines at an unfair disadvantage in the state market.
The Confederation of Indian Alcoholic Beverage Companies (CIABC), the apex body for domestic alcobev manufacturers, clarified that the industry is not seeking import restrictions or protectionism. Instead, it is urging the Madhya Pradesh government to review its excise policy and ensure a level playing field for domestic producers who invest heavily in quality, technology, and local supply chains.
The primary concern stems from the pricing disparities created when lower customs duties make imported Bottled-in-Origin (BIO) spirits far more affordable, while Indian manufacturers continue to operate under a complex state-level excise regime. Domestic production faces substantial manufacturing, financing, compliance, and distribution costs alongside local state taxes. CIABC pointed out that expecting Indian companies to offset unequal state duties simply by slashing production costs risks squeezing the investments required for premiumisation, including maturation, technology, and skilled talent.
Indian spirits have already demonstrated world-class quality by beating established global brands on international stages. Recent accolades include Indri Diwali Collector’s Edition 2025 winning Best Indian Whisky and Best Single Malt Indian Whisky at the International Whisky Competition 2026, Indri Agneya taking Indian Single Malt Whiskey of the Year at the London Spirits Competition 2026, Amrut Cask Strength securing Gold at the USA Spirits Ratings 2026, and Rampur Asava earning Best World Whisky at the John Barleycorn Awards.
CIABC stressed that while domestic producers will keep improving efficiency, taxation imbalances require government action. Aligning with 'Make in India' and 'Atmanirbhar Bharat' principles, the industry has urged the state government to evaluate the total regulatory burden and tax incidence on both imported and domestic products at comparable price points to establish an equitable, transparent excise framework.
