India Import Duty Waiver Request

A European industry lobby group, the Federation of European Businesses in India, whose members include Pernod Ricard, AB InBev, Heineken N.V., and Carlsberg Group, has requested that the Indian government grant a temporary exemption from a 10% import duty on glass bottles and aluminum cans. This request comes amid fears of packaging shortages and rising costs, primarily triggered by the Iran war and the broader Middle East crisis. Local manufacturers in India are unable to operate at optimal capacity, constraining supplies. The Indian alcohol market, valued at $65 billion, is already experiencing up to a 15% increase in raw material costs, with alternative sourcing options potentially adding 30% to expenses. The Brewers Association of India has also sought price increases, but government approvals for retail price changes are difficult to obtain in many Indian states. The conflict has also impacted energy supplies, with India's liquefied natural gas imports, crucial for glass factories, at their lowest since January 2025. While the United States and Iran reached a two-week ceasefire, the Strait of Hormuz remains affected, impacting trade routes.