CIABC urges MP Government
to review total state-level tax, regulatory burden on Indian-made spirits and
BIO products at comparable price points and correct unjustified disparities
BHOPAL: Imported liquor may be getting cheaper in Madhya
Pradesh, but the price cuts have raised concerns among Indian alcoholic
beverage manufacturers, who fear that cheaper imports could put domestic brands
in the premium and above categories in IMFL and Wines at a disadvantage.
Media reports suggest that
prices of select imported liquor brands in Bhopal have fallen by 15% to 40%
following tariff reductions under the India-UK Free Trade Agreement (FTA).
While lower prices offer consumers greater choice, domestic manufacturers say
the development highlights the need to review the state's excise policy and
ensure a level-playing field.
Indian manufacturers are
not seeking restrictions on imports. They want the government to ensure that
companies investing heavily in quality, technology and premium products are not
disadvantaged by taxation, regulatory barriers or unequal policy treatment.
What is sought is a level playing field.
Cheaper imports, tougher
competition
Price reductions in imported
liquor have brought pricing disparities into focus. Lower customs duties can
make foreign products more affordable, depending on applicable taxes,
distribution costs and retail margins. Domestic manufacturers, meanwhile, operate
under a complex state-level excise regime. Their costs include manufacturing,
financing, compliance, distribution and regulatory charges. Final retail prices
are also influenced by state taxes and pricing policies.
The concern is particularly
relevant when tariff concessions improve the price competitiveness of imported
products while Indian manufacturers continue to face domestic regulatory and
cost pressures. The industry is not seeking protection from competition. It
wants competition to take place under fair and transparent rules.
BIO policy under scrutiny
The treatment of
Bottled-in-Origin (BIO) spirits has emerged as another concern for Indian
alcoholic beverage manufacturers in Madhya Pradesh. Indian Alcobev Industry has
questioned the apparent differential treatment of BIO products and whether the
state's excise framework provides a consistent and objective basis for
competition. It has urged the MP government to examine the applicable duties,
fees, licensing conditions and pricing rules to determine whether they create
an avoidable disadvantage for domestic manufacturers. Legitimate regulatory
differences must be respected, but policies should not inadvertently favour
imported products over Indian manufacturing.
CIABC seeks equitable,
predictable excise policy framework; Atmanirbhar Bharat and Viksit Bharat must
translate into fair treatment for Indian manufacturing.
According to Confederation
of Indian Alcoholic Beverage Companies (CIABC), the apex body of Indian
alcobev manufacturers: “Indian premium spirits have already demonstrated their
ability to compete internationally on quality. The domestic brands competing
with imported Scotch in the premium and above segments include award-winning
single malts and luxury spirits recognised by international judges.”
Some of the accolades won
by Indian alcobev companies include the Best Indian Whisky and Best Single Malt
Indian Whisky award at the International Whisky Competition 2026 bagged by Indri
Diwali Collector’s Edition 2025. It pipped Dewar’s Double 21 Year
Old and Aberfeldy Sherry Cask 25 Year Old at the competition. Similarly, Indri
Agneya won the Indian Single Malt Whiskey of the Year title at the
London Spirits Competition 2026. Amrut Indian Single Malt Cask Strength won Gold at
USA Spirits Ratings 2026, while Rampur Asava
was named Best World Whisky at the 2023 John Barleycorn Awards. These
achievements across several Indian producers reflect the capability built
through sustained investment in distillation, maturation, cask selection and
product development.
“Manufacturers must continue
improving quality and production efficiency. However, manufacturing
efficiency cannot correct an imbalance created by taxation. A comparison
based solely on shelf prices is incomplete without examining the total state
duties, fees and regulatory costs applicable to comparable Indian-made and
imported products. Where policy creates a disadvantage for domestic
manufacturing, correcting it requires action by the government,” CIABC noted.
CIABC further said expecting
Indian manufacturers to offset an unequal tax burden simply by reducing
production costs risks squeezing the investment in maturation, technology and
skilled people that premiumisation requires. The policy objective should be to
encourage manufacturers to keep investing in better products while ensuring
that their competitiveness is assessed under equitable conditions.
CIABC urged the Madhya Pradesh
government to review the total state-level tax and regulatory burden on
Indian-made spirits and Bottled-in-Origin products at comparable price points
and correct any unjustified disparities. Consumers should have the opportunity
to choose on quality, value and preference.
“Make in India and
Atmanirbhar Viksit Bharat must translate into fair treatment for Indian
manufacturing. Domestic producers generate employment, support local supply
chains and build Indian brands for international markets. Indian spirits
that earn recognition abroad deserve a fair opportunity to compete at home.
An equitable and predictable excise framework would support this ambition while
safeguarding legitimate state revenue,” it added.
Atmanirbhar Bharat must mean
fair competition. Atmanirbhar
Bharat cannot be limited to encouraging Indian companies to manufacture. It
must also ensure that Indian products have a fair opportunity to compete in the
domestic market. The Madhya Pradesh government needs to ensure that its excise
policies support domestic manufacturers by rationalising regulations and
establishing a level playing field. A review of BIO treatment, tax incidence,
retail pricing and regulatory costs would help determine whether policy changes
are necessary.