Here's why your next beer or whisky could burn hole in your pocket. Deets inside
&imwidth=600&imheight=450&format=webp&quality=medium "Here's why your next beer or whisky could burn hole in your pocket. Deets inside")
Representative image. Photograph: (Unsplash)
The Confederation of Indian Alcoholic Beverage Companies (CIABC), the supreme body of the alcoholic beverage sector of India, has written to state governments demanding to revise the price for Indian Made Foreign Liquor (IMFL) products.
The Indian alcoholic beverage industry on Wednesday urged state governments to approve price increases of up to 15 per cent. The demand of the two of India's most powerful industry bodies has come amid soaring raw material costs triggered by the ongoing Middle East conflict.
The Confederation of Indian Alcoholic Beverage Companies (CIABC), the supreme body of the alcoholic beverage sector of India, has written to state governments demanding to revise the price for Indian Made Foreign Liquor (IMFL) products. The body is seeking to increase the amount between Rs 100 and Rs 150 per case of 9 litres, based on bottle weight and product segment.
Anant S. Iyer, Director General of CIABC, told the news agency ANI, "We would like a price increase anywhere ranging from 100 rupees to about 150 rupees, depending on the segment of the product that it operates in."
Meanwhile, the Brewers Association of India (BAI), the top body representing beer giants such as AB InBev, United Breweries (a Heineken company), and Carlsberg, has requested the state governments to increase up to Rs 25-30 per case (12 bottles of 650 ml) in beer prices.
Painting a ferocious picture of the finances of the sector, Vinod Giri, Director General of BAI, said, "Beer companies are in a loss in many states today. They will not survive if the prices are not increased." He also urged both the government and consumers to share the burden, despite putting it completely on the industry.
The trigger for the crisis escalated amid the Middle East conflict that has sent shockwaves through global supply chains, putting the cost of crude oil, energy, packaging materials, and industrial inputs that the beverage industry highly depends on.
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With the alcohol and beverage industry contributing nearly Rs 350 lakh crore annually to government revenues, industry leaders say the sector urgently needs policy support. "I hope the government will decide in this regard at some point -- but that must be immediate and now. So we are requesting the state governments to help us," said Giri.
Why alcoholic beverage industry demanding a hike in price?
The severity of the cost pressures becomes evident from the sharp rise in input prices. Domestic polymer manufacturers, such as BPCL, RIL and IOCL, have been revising prices repeatedly as naphtha costs climb and supplies from the Middle East face disruptions. Polypropylene (PP), used in plastic caps, has increased by Rs 35 per kg, a 36 per cent jump, since late February 2026, including a one-day surge of Rs 12 per kg on March 10.
HDPE, another material used for bottle caps, has gone up by per kg (around 31 per cent), with supplies tightening after imports from Iran were affected by force majeure conditions in the Gulf. PET resin, a key packaging material, has risen by Rs 34.50 per kg, about 40 per cent in just a month, driven by higher crude-linked inputs such as PTA and MEG.
Paperboard costs have also climbed, as freight charges for imported wastepaper from the US and Europe have increased sharply, ranging between $400 and $1,500 per container. Meanwhile, aluminium prices on the LME, used for ROPP bottle caps, have risen 8 per cent to $3,406 per metric tonne since late February, with premiums staying high as shipping routes avoid the Strait of Hormuz.
