E-Malt.com News article: India: Brewers seek permission from state governments to increase beer prices

The ongoing tensions in West Asia have led to a surge in the prices of various commodities. First, they caused a rise in the prices of daily-use items, and now reports suggest that India Made Foreign Liquor (IMFL) companies are facing difficulties because of it. They have now sought permission from state governments for a slight increase in beer prices. According to beer manufacturers, rising glass prices and shortages have created major problems, India.com reported on May 7.

The situation has become so difficult that even after agreeing to pay higher prices, they are not receiving bottle supplies on time.

Vinod Giri, Director General of the Brewers Association of India, an organisation that represents the beer manufacturers in India, told NBT that after brewing beer, delivering it to consumers is a major task. Beer is packaged either in glass bottles or aluminum cans.

In India, nearly 80 percent of beer is sold in glass bottles. Due to the war, producing glass in the country has become more expensive, while supplies have also declined.

Here are some of the key details:
• Vinod Giri said that the cost of bottles accounts for nearly 40–45 percent of beer prices.
• Empty beer bottles cost between Rs 12 and Rs 15 at the factory level
• Aluminium cans cost around ₹8 to ₹9 each.
• Since most beer sales in India (around 80 percent) take place through bottles, packaging is largely dependent on glass bottles.
• At present, a shortage of gas has reduced production at glass bottle manufacturing factories.
• At the same time, their production costs have also increased.
• Manufacturers have raised prices by nearly 20 percent.
• There are only two companies in the country that produce cans, and both are multinational firms.
• Since their domestic production is limited, they import cans from abroad to fulfil orders.
• Due to the ongoing war, logistics costs have risen sharply, which has also forced them to increase prices.

The Confederation of Indian Alcoholic Beverage Companies (CIABC), an association representing foreign liquor manufacturers in India, has reportedly made a similar request to state governments. The industry body has sought permission for a slight increase in prices.

In a representation sent to state governments, CIABC Director General Anant S. Iyer stated that nearly 20 percent of the world’s crude oil supply comes from West Asia. However, the ongoing crisis has disrupted supplies from the region.

Its impact has been felt across industries, including the packaging sector. Logistics costs have increased, while the glass manufacturing industry is also facing difficulties. Overall, inflationary pressures are affecting the entire economy.


08 May, 2026