Scotch prices fall in India after UK trade deal
Scotch whisky prices are beginning to fall in India following the first tariff reduction under the UK-India trade agreement. Major brands have reportedly become between 10% and 15% cheaper in some states as distillers pass on lower import costs.
“Price difference, the entry of new whiskies and availability will be key factors for the Indian market,”
The first effects of Britain’s trade agreement with India are being seen on the shelves of drinks retailers.
The Times of India reports that since the duty on Scotch whisky was reduced from 150% to 75% on 15 July, retail prices of major brands have been lowered by between 10% and 15% as distillers pass on lower import costs.
The cuts have already taken place in states including Maharashtra, Rajasthan, Goa and Uttar Pradesh, where whisky is a major seller, with reductions in other states expected to follow.
Prices vary depending on the state involved, as individual governments set their own excise rates on alcohol.
While none of the importing groups has quantified a direct effect on sales, industry sources have reported significant cuts designed to bring Scotch brands into price brackets that are more competitive with local whiskies.
For instance, a 75cl bottle of Diageo’s Johnnie Walker Black Label is now available for ₹3,800 (£29.85), compared with ₹4,250 (£33.40) only a couple of months ago. Meanwhile, J&B has fallen to ₹1,700 from ₹2,300.
According to local sources, Pernod Ricard has applied to regional governments to reduce prices on The Glenlivet, Ballantine’s and Chivas Regal.
Tariffs set to fall further
These reductions offer an early indication of how Scotch prices could fall further to increase competition as the national tariff is lowered to 40% over the next 10 years.
The Economic Times quoted Sandeep Arora, founder of Spiritual Luxury Living, as saying: “The UK FTA will have an impact on existing prices being offered by bottled-in-origin brands. This could lead to a shift in competitive dynamics for other whiskies, including Indian single malts.
“Price difference, the entry of new whiskies and availability will be key factors for the Indian market,” he said.
Diageo had previously projected that retail price cuts of between 7% and 9% were likely for its bottled-in-origin whiskies on a nationally weighted basis.
