India-UK FTA agreement: Scotch brands to get cheaper
The trade agreement is approaching its finalisation and is anticipated to have a minimum import price (MIP) for bottled Scotch, with lowered import duties for bottled and cask whiskey.
A difference of $1 in the import cost of whiskey could lead to risen shipment of famous brands.
Trade pact to specify minimum import price (MIP) for Scotch, lowering import duties.
Johnnie Walker and other scotch brands’ prices to get reduced:
India’s offered free trade agreement (FTA) with the UK has raised worries among domestic whiskey producers, as it may result in a significant increase in the shipment of famous brands like Johnnie Walker Black Label and Chivas Regal, said a report the media on Monday.
The trade contract is approaching its finalisation and is anticipated to have a minimum import price (MIP) for bottled Scotch, with lowered import duties for bottled and cask whiskey.
Under the offered FTA, bottled Scotch past the MIP threshold could see import duties decreased from 150 per cent to 100 per cent, while casks may experience a split duty at 75 per cent. Although the points are still being dealt with, talks have revolved around slowly lowering customer duty on bottled Scotch to 50 per cent over ten years.
Based on the venture with Australia, which saw customs duty on wine cut under a temporary FTA, the domestic industry is pushing for a MIP of 5 per cent for every 750 ml packing. Nevertheless, there are indications that India may decide on a MIP of $4 per bottle, which could lead to a surge of Scotch imports from the UK.
Domestic players worry this could wipe out some homegrown brands and Indian-made foreign liquor (IMFL) products.
Imported products include a small amount, about 3.3 per cent, of the overall Indian whisky business. Yet, in the middle and premium segments, defined as whiskies priced over Rs 750 for each bottle, the share of Scotch is about 32 per cent and steadily rising.
