International Spirits & Wines Association of India (ISWAI) has sought urgent intervention from the government of Karnataka to address the escalation in input and packaging costs being faced by the spirits industry due to the ongoing conflict in West Asia, and the resulting global energy and commodity crisis.
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The sharp volatility in oil, gas, coal, and petrochemical feedstocks has triggered a structural increase in packaging costs across multiple categories, leaving little scope for manufacturers to absorb these costs through operational efficiencies or alternative sourcing, according to the association.
Sanjit Padhi, CEO, ISWAI said, India’s alcoholic beverage industry is witnessing a sharp and sustained increase in input, packaging, freight and energy costs due to the ongoing West Asia crisis, and the resulting volatility in global commodity markets.
“We urge States to consider a balanced and pragmatic approach toward price revisions to help maintain business viability, ensure uninterrupted consumer supply, safeguard employment across the value chain, and sustain the industry’s significant contribution to State excise revenues, and the broader economy,” he urged.
