Cut import duty in phased manner under India-UK trade pact on alcoholic beverages: CIABC

Alcoholic beverage industry body CIABC on Tuesday urged the government to consider reducing the import duty in a phased manner under the proposed free trade agreement between India and the UK.

The Confederation of Indian Alcoholic Beverage Companies (CIABC) said that the government should ensure better market access for Indian products in the UK.

On February 24, Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds announced resumption of negotiations for the proposed agreement.

"The government needs to safeguard the interests of Indian liquor manufacturers while deciding on issues related to customs duty cuts and other concessions under FTAs.

"Though we have already recommended to the government to cut cuts basic customs duty on spirits over a period of 10 years, we also want the government to ensure better international market access and safeguard interests of Indian companies against any dumping of products through transfer price mechanism at lower prices specifically for India," CIABC Director General Anant S Iyer said in a statement.

Cut in the duty on Scotch whiskey is a key demand of the UK in the pact.

At present, Scotch whiskey, imported from the UK - both in bottled and bulk - is taxed at around 150 per cent in India.

The body also urged for stringent measures to check and curb dumping of imported spirits and sought better international access for Indian alcoholic products which face several non-tariff restrictions at present.

"Countries should remove non-tariff barriers which prevent a vast majority of Indian products from entering the Western countries including the UK," he said.

The beverage alcohol industry contributes over Rs 3 lakh crores to the exchequers of state governments apart from revenue accruing to the Centre from Customs duty and GST on a host of inputs.

In 2023-24, India's exports of these beverages stood at $390 million. It was $325 million in 2022-23.