India's top alcohol industry bodies are demanding price hikes of up to 15% for liquor and beer. They have urged state govts to approve the revision, citing crippling increases in raw material and energy costs due to the Middle East conflict.
The Indian alcoholic beverage industry is sounding the alarm. Battered by soaring raw material costs triggered by the ongoing Middle East conflict, two of India's most powerful industry bodies have formally urged state governments to approve significant price hikes of 15 per cent.
Industry Seeks Steep Price Hikes
The Confederation of Indian Alcoholic Beverage Companies (CIABC), the apex body of India's alcoholic beverage sector, has written to state governments seeking price revisions for Indian Made Foreign Liquor (IMFL) products. The body is asking for an increase ranging between Rs 100 and Rs 150 per case of 9 litres, depending on the product segment and bottle weight. Anant S. Iyer, Director General of CIABC, told 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 apex body representing beer giants such as United Breweries (a Heineken company), AB InBev, and Carlsberg -- has separately appealed to state governments for a Rs 25-30 per case (12 bottles of 650 ml) increase in beer prices. Vinod Giri, Director General of BAI, painted a grim picture of the sector's finances. "Beer companies are in a loss in many states today. They will not survive if the prices are not increased," he warned, urging both the government and consumers to share the burden and not put it all on the industry.
Global Conflict Fuels Cost Crisis
The trigger for the crisis is clear. The escalating Middle East conflict has sent shockwaves through global supply chains, driving up the cost of crude oil, energy, packaging materials, and industrial inputs that the beverage industry depends on heavily.
With the alco-beverage sector contributing close to Rs 350 lakh crore in revenue annually to government coffers, industry leaders argue they deserve urgent policy support. "I hope the government will take a decision 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.
Unprecedented Surge in Raw Material Prices
The scale of the cost crisis becomes clearer when one looks at the raw numbers across key inputs. Domestic polymer producers -- including BPCL, RIL, and IOCL -- have been forced into repeated price revisions as Naphtha prices surge and Middle Eastern shipments grind to a halt.
Polypropylene (PP) used in plastic caps has jumped by Rs 35/kg -- a 36 per cent rise -- since late February 2026, including a single-day spike of Rs 12/kg on March 10.
HDPE used in bottle caps has risen by Rs 33/kg (around 31 per cent), with supply severely choked after Iranian imports dried up amid force majeure conditions in the Gulf.
PET Resin, critical for packaging, has surged Rs 34.50/kg -- a staggering 40 per cent jump in a single month -- driven by spiking crude oil-linked feedstocks PTA and MEG.
Paperboard prices have also firmed, with imported wastepaper freight costs from the US and Europe surging between USD 400 and USD 1,500 per container.
Aluminium (LME) used in ROPP bottle caps has risen 8 per cent to USD 3,406/MT since late February, with physical premiums remaining elevated as vessels avoid the Strait of Hormuz.
Brent Crude remains volatile above USD 100/barrel, still 15-20 per cent higher than its late-February levels despite retreating from a peak of USD 120.
Indonesian Coal has surged over 20 per cent in less than three weeks, from USD 106/MT to USD 128/MT, driven by global energy scarcity.
Perhaps the most acute pressure is on glass -- the very bottle that holds the product. GAIL has issued Force Majeure notices to several industrial units, cutting LNG supply to the Firozabad glass hub to just 60 per cent of contracted quantities, with the risk of closure looming. Glass suppliers are being pushed to expensive spot LNG or LPG. The 19kg commercial cylinder price has spiked by Rs 144 this month alone, now standing at Rs 1,973.50. Suppliers are signalling 8-12 per cent price hikes on glass bottles, citing higher natural gas costs and a 15 per cent rise in Soda Ash prices.
Diesel costs for industrial gensets and equipment have also climbed, following OMC price hikes on petroleum products for industrial use. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)