Key Points
The Indian alcohol industry is grappling with shrinking margins, thanks to the rising cost of raw materials used to produce alcohol, while the state governments are keeping the maximum retail price (MRP) constant..
The raw materials for manufacturing alcohol include extra neutral alcohol (ENA), glass, labels, closures, paper packaging, and miscellaneous materials..
While ENA witnessed a price increase of 53 per cent between 2018 and 2023, glass prices increased by around 79 per cent, label prices rose by 29 per cent, closures prices increased by 22 per cent, and the cost of paper packaging moved up by 31 per cent during the same period, according to data exclusively shared by International Spirits and Wines Association of India (ISWAI)..
The Indian alcohol industry seeks an inflation model for rising input costs...
. Unlike any other sector, like FMCG where the manufacturing price hike is also passed on to the consumer, the alcohol industry fails to get it reflected on its MRP...
