Bhubaneswar, March 26: The ongoing tension in the Middle East/West Asia as well as the blockage of Strait of Hormuz imposed by Iran is not only creating a global energy crisis, but also going to make the Indian alcoholic brands dearer.
According to media reports, the Confederation of Indian Alcoholic Beverage Companies (CIABC) has written to the state governments yesterday (March 25) urging them to accord seal of approval of a 15% price hike in all Indian Made Foreign Liquor (IMFL) products.
The ace body of the Indian alcoholic beverage sector has reportedly cited that there has been a hike in the raw material costs caused by the ongoing tension in the Middle East/West Asia.
Media reports further stated that the Brewers Association of India (BAI) has also urged the state governments to accord seal of approval so that Rs 25-30 could be increased in beer prices per case (12 bottles of 650 ml).
Notably, the ongoing Middle East/West Asia conflict as well as the strategic chokepoint Strait of Hormuz being now an apple of discord has adversely affected the global supply chain, availability of packaging materials and industrial inputs the Indian beverage industry heavily bank on.
The beverage industry is now reportedly suffering from the price hike in domestic polymers due to increase in the price of naphtha costs as well supply disruptions. Besides, the price of polypropylene used in plastic caps has also increased.
Similarly, price of paperboard used for packaging has soared, and also the price of aluminium used for ROPP bottle caps gone up.
Pertinent to note that, a whopping amount of Rs 350 lakh crore revenue reportedly comes to the government coffers from the alcohol and beverage industry in India.
