Duty concessions under New Zealand FTA to help boost exports of single malt whisky: CIABC

Duty concessions on Indian liquor under the free trade agreement with New Zealand will boost exports of single malt whisky and enhance price competitiveness for other items in the island nation, industry body CIABC said on Tuesday.

The Confederation of Indian Alcoholic Beverage Companies (CIABC) also said that given the current low export base, the agreement is likely to support market entry and brand building, particularly in segments such as whisky, rum and premium Indian spirits.

“The FTA is expected to provide duty-free access for Indian alcoholic beverage exports into New Zealand, improving price competitiveness for Indian products in that market,” the body’s Director General Anant S Iyer said. India’s exports of spirits is just around USD 1 million per annum to New Zealand. Currently, some premium liquors, particularly Indian single malts, are being exported to New Zealand.

Hopefully, with the free trade agreement in place, Indian alcobev companies will increase their focus and develop the market, he said, adding that wines and beer have more consumption share in New Zealand. “With duty concessions on Indian liquor, we see exports of Indian single malts, which have earned laurels globally, getting a boost in New Zealand,” he said.

India’s alcobev exports to New Zealand are currently modest. In 2024-25, beer exports stood at around USD 0.34 million, followed by whisky (USD 0.13 million) and rum (USD 0.04 million).

Other categories, such as vodka and gin remain negligible, while wine exports are minimal, keeping overall trade at a low base.

At present, alcoholic beverages in New Zealand are subject primarily to excise duties, typically applied either per litre of product in the case of wine, or per litre of alcohol in the case of spirits.

“Import tariffs are already low, but the FTA is expected to provide duty-free access and greater certainty, while domestic taxes and regulatory requirements will continue to apply,” Iyer said.

On the other hand, he said, wine imports into India may see some uptick over time as FTAs improve market access.

However, the impact is likely to be gradual, he said, adding the overall wine category (domestic/imported) in India remains relatively small compared to spirits/beer, unlike abroad and continues to be shaped by state-level duties, distribution limitations and evolving consumer awareness.

“We might see some increase in imports in premium wines which New Zealand wineries produce and export worldwide,” he said.

However, the market size for premium wines (priced over Rs 1,500 per 750 ml bottle) is on the lower side.

He added that New Zealand produces high-end wines and any technical collaboration between the New Zealand wine industry and Indian wine-makers which adds to the value to our products is welcome.