Indian spirit manufacturers, represented by the Confederation of Indian Alcoholic Beverage Companies (CIABC), have accused several state governments of discriminatory excise policies that favor imported bottled-in-origin (BIO) alcoholic beverages over domestic brands. The policies, prevalent in states like Maharashtra, Delhi, Kerala, Haryana, Odisha, Assam, and Madhya Pradesh, impose higher taxes and fees on Indian-made foreign liquor (IMFL), undermining local producers despite their global recognition.

CIABC highlights that Indian brands face exorbitant brand registration fees, ranging from Rs 8 lakh to Rs 25 lakh per brand in Delhi, compared to just Rs 3 lakh per brand for BIO products. In Maharashtra, IMFL brands pay 300% excise duty, while BIO products, slashed to 150% in 2021, have seen sales surge from 5,000 to 42,000 cases monthly by 2024. For example, a case of premium Indian single malt Amrut Fusion incurs Rs 6,799 in excise duty, while JW Black Label pays Rs 4,785.

These disparities, CIABC argues, make Indian premium brands less competitive, especially as free trade agreements reduce customs duties on BIO products. “Indian premium brands winning global accolades face taxation hurdles at home, contradicting the vision of an Atmanirbhar Bharat,” the association stated. In Kerala, IMFL brands face higher excise duties, sales taxes, and retail margins, making BIO products cheaper despite similar supply prices.

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CIABC Director General Anant S Iyer noted that high costs deter new Indian premium brands, particularly in Delhi, where registration fees are prohibitive. The association has urged state governments to address these anomalies, warning that biased policies reduce state revenues due to declining IMFL sales and threaten the growth of India’s domestic liquor industry, which has seen premium segment growth drop from 24% in FY23 to 6% in FY24.

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