CIABC urges Govt to ensure a fair and level-playing field against imports

Domestic spirits makers’ body CIABC on Saturday said it expects tariffs on spirituous beverages to be aligned with India’s recently signed free trade agreements (FTAs) with the UK and the EU. According to the framework finalised by India and the US for an interim trade agreement, American goods ranging from wines and spirits to dry fruits will enter India either duty-free or at reduced import tariffs. Urging the Indian Government to ensure a “fair and level-playing field against imports”, the Confederation of Indian Alcoholic Beverage Companies (CIABC) said it hopes the deal will be “equitable and mutually beneficial” for both nations.

CIABC, which represents home-grown Indian Made Foreign Liquor (IMFL) players, said it is not against reduction” in import duty, but wants it in a “phased manner”. “It hopes that the Government will address issues raised by CIABC relating to removal of non-tariff barriers across FTAs and ensure a fair and level-playing field against imports,” said its DG  Anant S Iyer. CIABC further said the domestic industry is already at a disadvantage compared to manufacturers from developed countries due to high capital and operational costs and restrictive licensing regimes.

Last year in February, India had slashed import duty on bourbon whiskey from US to 50 per cent. On February 13, 2025, the Indian Government reduced the import duty on bourbon whiskey from 150 per cent to 100 per cent. Bourbon is a American whiskey made primarily from corn and aged in new, charred oak barrels. Moreover, CIABC has also requested state Governments to “withdraw all excise concessions given to imported liquor” as cut in customs duties will further hit the Indian products - both in spirits and wine categories.

Highlighting the impact of duty cuts, CIABC has requested state Governments to withdraw excise concessions currently extended to imported liquor, warning that a simultaneous reduction in customs duties would deliver a “double whammy” to Indian producers in both spirits and wine categories. The Imported Bottled-in-Origin (BIO) spirits have a more favourable tax structure in some states, which is making the home-grown industry “less competitive”.

The association also demanded stringent measures to prevent dumping of imported spirits and called for improved international market access for Indian alcoholic products, which continue to face non-tariff restrictions in countries such as the EU, UK and Australia. India and the US on Saturday announced they have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade.

Under the pact, the US will reduce tariffs on Indian goods to 18 per cent from the present 50 per cent, while India will eliminate or cut down import duties on all US industrial goods and a wide range of American food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits.