Canned Crisis: India's Beer Industry Seeks Relief Amid Aluminium Shortage
India's beer industry faces a critical shortage of aluminium cans, risking a government revenue shortfall. The Brewers Association of India calls for emergency rules relaxation to ensure supply continuity. Domestic suppliers lack capacity, and imports are hindered by new certification requirements, threatening operational and economic stability.
- Country:
- India
The Indian beer industry is grappling with a severe shortage of aluminium cans, threatening both its growth trajectory and government revenues. The Brewers Association of India (BAI) has urged the government to relax regulations temporarily to secure sufficient supplies from abroad, following mandatory Bureau of Indian Standards (BIS) certification introduced this year.
Aluminium can shortages could mean an annual deficit of 12-13 crore units of 500 ml cans, crucial for 20% of the country's beer sales. With domestic manufacturers unable to fulfill demand and import processes slowed by prolonged BIS certification, a supply crisis looms, BAI warned.
Top beer firms AB InBev, Carlsberg, and United Breweries are advocating for regulatory leniency until local production can ramp up, a process that may take a year. Meanwhile, government revenue losses could reach INR 1,300 crore due to reduced state excise and VAT revenues.
(With inputs from agencies.)
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