India’s alcoholic beverage industry has sought price revisions from state governments, citing rising input costs triggered by global supply chain disruptions linked to geopolitical tensions in the Middle East. Industry bodies have warned that escalating prices of packaging materials, freight charges, and energy inputs are putting significant pressure on production costs across segments including beer, IMFL (Indian Made Foreign Liquor), and wine.

The Brewers Association of India (BAI) has urged state authorities to allow a price increase of 15–20% for suppliers to partially offset cost escalation. According to BAI Director General Vinod Giri, the industry is facing sharp increases across multiple raw materials, with glass bottle prices rising by around 20%, paper cartons nearly doubling in cost, and materials such as LDPE, BOPP, and adhesives becoming 20–25% more expensive. He said supply chain disruptions have created uncertainty for manufacturers.

BAI also warned that the situation is being worsened by a severe shortage of commercial LNG supply, which has put pressure on glass manufacturers and raised concerns of partial or complete shutdowns. The industry body added that aluminium supplies used in beer cans have been affected, with prolonged disruptions potentially impacting production capacity. Rising aluminium costs and energy constraints are expected to further strain supply chains in the coming months.

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In addition to raw material pressures, freight and logistics costs have increased by around 10%, while currency depreciation has further raised import expenses. As an interim measure, BAI has also requested a reduction in manufacturing levies by Rs 3–5 per bulk litre, arguing that such relief is necessary to cushion the impact on producers and maintain stability in the sector.

The Confederation of Indian Alcoholic Beverage Companies (CIABC), which represents IMFL and domestic wine makers, has also approached state governments seeking revisions in ex-distillery and ex-winery prices. CIABC Director General Anant S. Iyer said the geopolitical situation has intensified inflationary pressures, especially as the Middle East accounts for a significant share of global crude oil supply and remains critical to India’s trade routes.

CIABC further noted that gas supply constraints in key glass manufacturing hubs such as Firozabad have forced producers to rely on costlier fuel sources like LNG and LPG, pushing up production costs. It also highlighted rising ocean freight charges, including emergency surcharges imposed by shipping lines, as another major factor affecting exports and domestic supply chains, warning that sustained disruptions could continue to impact the industry’s pricing structure.

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