European Lobby Urges Glass Import Duty Exemption Amidst War-Induced Shortage

A European industry lobby group, representing major companies like Pernod Ricard, Anheuser-Busch InBev, Heineken, and Carlsberg, has petitioned the Indian government for an exemption from a 10% import duty on glass bottles and aluminum cans. The plea comes amidst fears of a shortage triggered by the conflict in Iran, according to a letter obtained by Reuters.

The letter by the Federation of European Businesses in India outlines the challenges faced by the country's $65 billion alcohol market, which is grappling with increased costs for glass bottles, cartons, and labels due to the Middle East crisis. The document also emphasizes the difficulty for beverage firms in India to transfer these additional costs to consumers, owing to government controls on retail pricing in two-thirds of the nation's states.

Despite reaching out to multiple stakeholders, including the Indian commerce and finance ministries, there has been no official response thus far. The situation remains tense as businesses, heavily dependent on imports, assess alternative sourcing options, potentially at higher costs, to maintain their supply chains amidst the ongoing supply chain crisis.