Indian Alcoholic Beverage Industry Seeks Government Action On Imported Spirits Dumping

Alcoholic beverages makers' body CIABC on Saturday urged the government to impose stringent measures to curb dumping of imported spirits and ensure greater market access for domestic products. The Confederation of Indian Alcoholic Beverage Companies said the Indian liquor manufacturers are not against reduction in import duty, though they have sought the import duty cuts in a phased manner. India on Feb. 13 slashed import duty on bourbon whiskey to 100%. It is mainly imported from the US.

The confederation "has urged the government to address the concerns of the Indian companies and ensure a level-playing field in FTA (free trade agreement) negotiations and set in stringent effective measures to check and curb dumping of imported spirits and seeking better international access for Indian alcoholic products which face several non-tariff restrictions at present," it said in a statement.

It has also requested the states to withdraw excise duty concessions given to imported liquor in view of reduction in customs duty.

The government needs to safeguard the interests of Indian liquor manufacturers while deciding on issues related to customs duty cuts and other concessions under FTAs, CIABC Director General Anant S Iyer said.

"Though we have already recommended to the government to cut basic customs duty on spirits over a period of 10 years, we also want the government to ensure better international market access especially the Western countries and safeguard interests of Indian companies against any dumping of products through transfer price mechanism at lower prices specifically for India," Iyer said.

He added non-tariff barriers imposed by other countries prevent a vast majority of Indian products being sold in the Western markets.

"We also want these markets to recognise Indian whiskies at par with other global products," he said, adding the industry needs to be protected as there is always the fear of cheap imports in spirits and wines eroding the domestic industry.

The alcoholic beverage industry contributes over Rs 3 lakh crore to the exchequer of states apart from adding central government's revenue in terms of customs duty and GST on a host of inputs.