1 hr ago
Scotch whisky prices fall in India after trade agreement
Scotch whisky has become cheaper in parts of India.
Some bottles from Johnnie Walker and J&B now cost about 10-15% less.
The price cuts followed a trade agreement between India and the United Kingdom.
This agreement reduced the tax charged when British whisky enters India.
The tax was cut from 150% to 75%.
Prices are not falling by exactly the same amount because states add their own taxes and fees.
Shops and companies also affect the final price.
More states may reduce prices later.
Cheaper imported whisky could create more competition for Indian whisky brands.
Scotch whisky prices in several Indian states have fallen by about 10-15%.
Johnnie Walker Black Label now costs roughly ₹3,800, down from ₹4,250.
J&B prices have dropped to about ₹1,700 from approximately ₹2,300.
The India-UK trade agreement cut British whisky import duties from 150% to 75%.
Further reductions could intensify competition between imported Scotch and Indian single-malt brands.
- Who
- Diageo and Pernod Ricard, which sell major Scotch whisky brands in India.
- What
- Scotch whisky prices have fallen by about 10-15% in several Indian markets.
- Where
- Price cuts have been reported in Rajasthan, Maharashtra, Goa and Uttar Pradesh.
- When
- The reductions followed the India-UK trade agreement taking effect on July 15.
- Why
- Lower import duties under the trade agreement reduced costs, although state taxes, distribution expenses and retailer margins still affect prices.
Consumer benefit
Industry caveat
How much of the tariff cut reaches shoppers
Consumer benefit
Lower import duties are already producing noticeable retail price reductions, giving consumers cheaper access to imported Scotch whisky.
Industry caveat
Retail prices do not fall in direct proportion to the tariff reduction because state excise duties, taxes, distribution costs and retailer margins remain significant.
Effect on whisky competition
Consumer benefit
Narrower price differences could help consumers compare imported Scotch with Indian single-malt brands and increase competition.
Industry caveat
The larger reductions in some states reflect local pricing structures and companies’ commercial decisions, rather than the tariff cut alone.
Key facts
- Reported price decline
- About 10-15% for some Scotch whisky products
- Johnnie Walker Black Label
- Approximately ₹3,800 for a 750-ml bottle, down from ₹4,250
- J&B
- Approximately ₹1,700, down from about ₹2,300
- Current import duty
- 75%, reduced from 150% under the trade agreement
- Future import duty
- Scheduled to fall to 40% over the next decade
- Companies involved
- Diageo and Pernod Ricard
- Markets reporting reductions
- Rajasthan, Maharashtra, Goa and Uttar Pradesh
Quotes
The Indian government
The Indian government, which issued a press release about the India-UK trade agreement
“By granting zero-duty access on nearly 99% of India's exports, covering almost 100% of the trade value, the CETA is expected to strengthen India's export competitiveness”
livemint.com
Sources
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