Now Reading: Scotch prices fall 10-15% in India after UK trade pact
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Scotch prices fall 10-15% in India after UK trade pact
Scotch whisky prices in India have dropped 10-15% for the first time since the India-UK free trade agreement took effect on July 15, as Diageo and Pernod Ricard pass lower import costs…
Scotch whisky prices in India have dropped 10-15% for the first time since the India-UK free trade agreement took effect on July 15, as Diageo and Pernod Ricard pass lower import costs to consumers in key states. Johnnie Walker Black Label (750ml) now sells at about Rs 3,800, down from Rs 4,250, while J&B has fallen to around Rs 1,700 from Rs 2,300. The cuts are visible in Maharashtra, Rajasthan, Goa and Uttar Pradesh, with more states expected to follow after companies submit price-reduction proposals to state excise authorities along with proof of UK origin.
The trade pact halved the tariff on British whisky to 75% from 150%, with a further reduction to 40% over 10 years. Retail prices have not fallen by the same margin because import duty is one component alongside state excise, taxes and distribution costs. Pernod Ricard has applied for price cuts on Chivas, Ballantine's and The Glenlivet. Industry executives expect the narrowing price gap with Indian single malts such as Amrut and Paul John to intensify competition. Companies said a clearer picture will emerge after the festive season.
Indian Opinion Analysis
The tariff cut from 150% to 75% is the first under the 2023 trade agreement, which phases duties down to 40% over a decade. The actual retail drop is muted because state excise duties, often 150-200% of the import price in Maharashtra and Uttar Pradesh, remain untouched. Diageo’s own estimate of a 7-9% national weighted average fall suggests the 10-15% cuts seen so far are state-specific commercial decisions, not the tariff saving being passed through fully. The real competitive pressure will show after the festive season, when Indian single-malt makers like Amrut and Paul John will have to decide whether to cut their own prices to hold shelf space against now-cheaper Scotch. The next data point is state-wise excise approval of Pernod Ricard’s pending proposals for Chivas and Ballantine’s.
Source: economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above.
