The apex body for liquor firms Confederation of Indian Alcoholic Beverage Companies has urged the government to gradually reduce customs duties on British alcoholic beverages under the proposed India-UK free trade agreement, and not in an unfair manner as that could impact domestic players.
Confederation of Indian Alcoholic Beverage Companies (CIABC) Director-General Vinod Giri said that the duties on scotch whiskies should not be reduced in a hurry and unfairly.
India and the UK have formally launched negotiations for an FTA, under which duties would be reduced or eliminated on several goods traded between the two countries.
Also Read: Rift between BJP and JD(U) in Bihar widens
"We urge our government to ensure (in the FTA) that Indian alcoholic beverage industry is permitted a truly level playing field by way of an effective customs duty that is reflective of the higher cost of production driven by the regulatory restrictions and capital cost in India; equal opportunities are created for export of Indian products to the UK, and measures are put in to prevent dumping or predatory price exports to India," Giri said in a letter to the commerce ministry.
The Confederation of Indian Alcoholic Beverage Companies (CIABC) has also suggested the government to ensure that the UK allows the selling of domestic whiskies as 'Indian Whisky', irrespective of whether they are made from malt, grain spirits or molasses-based spirits.
The UK should also remove the condition of a minimum three years maturation period for whisky and rum, the body said.
"The domestic alcoholic beverages industry only seeks just and fair level playing field for Indian producers and help them achieve global scale and success...It is therefore vital that the interests of the domestic industry are not compromised, and opportunities are created for Indian products to reach out and conquer the world," the body added.
He also said that the alcoholic beverages industry contributes Rs 2.5 lakh crore annually in taxes to the states, employs 20 lakh people and supports 50 lakh farmers.
Giri informed that the UK has imposed "non-tariff barriers", related to product recipe and ageing, on Indian alcoholic beverages, which prevents most domestic products from accessing the British market.
"These must be removed to ensure genuine quid pro quo," he said in the letter.
On January 13 this year, India and the UK formally launched negotiations for the proposed free trade agreement (FTA), which is expected to help double bilateral trade to over USD 100 billion by 2030 and boost economic ties between the two countries.
Further, the confederation said that to prevent dumping of beverages, India should impose a minimum assessable value (MAV), and treatment of bottled and bulk spirits as same for tariff and MAV.
"Today, India produces internationally acclaimed single malt whisky brands such as Paul John, Amrut, Rampur, Solan Gold, gins such as Jaisalmer, and wines like Sula which are being exported across the globe. These products confidently and proudly showcase their Indian heritage to the world," he said.
India's exports to the UK stood at $8.15 billion in 2020-21, while imports aggregated at $4.95 billion.
Watch the latest DH Videos here: