Bengaluru: Premium imported liquor, including Scotch whisky from the United Kingdom, could soon become more affordable in Karnataka following the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA).
The agreement officially came into force on 15 July and is expected to provide additional price benefits for consumers. This comes after Karnataka’s recent excise policy had already reduced the prices of several premium imported alcoholic beverages.
Earlier this year, the Karnataka government introduced a revised excise duty system based on the Alcohol in Beverage (AIB) content. The new policy, which took effect from 11 May, changed the way liquor is taxed by linking excise duty to the alcohol percentage rather than earlier methods.
As a result, premium imported drinks with lower alcohol content became significantly cheaper, with prices reportedly falling by around 15% to 23%. At the same time, some lower-priced brands with higher alcohol content became more expensive.
The newly implemented India-UK trade agreement has brought another important change. Customs duty on Scotch whisky imported from the UK has been reduced from 150% to 75% with immediate effect. The tariff is planned to be reduced further in phases to 40% over the next 10 years.
Industry experts believe this reduction in import duty will help lower retail prices of premium imported liquor even further.
According to the International Spirits and Wines Association of India (ISWAI), consumers in Karnataka may benefit from an additional price reduction of around 5% to 7%.
ISWAI Chief Executive Officer Sanjit Padhy said, “the new excise policy in Karnataka has already significantly reduced the prices of imported liquor. The India-UK Free Trade Agreement is expected to bring an additional 5% to 7% reduction in prices.”
However, the expected price cuts may not be visible immediately. Industry representatives say the revised customs system, required documentation and supply chain adjustments must be completed before the lower prices reach consumers.
The agreement may also create stronger competition for Indian premium liquor makers. As imported Scotch whisky becomes more affordable, domestic premium single malt whiskies and other high-end brands could face increased competition.
At the same time, easier access to bulk Scotch imports may benefit Indian manufacturers by improving the availability of quality raw materials for blending and production.
Experts believe the trade agreement will ultimately offer consumers a wider choice of international premium brands at more competitive prices while also creating new opportunities for parts of the domestic liquor industry.
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