ISWAI urges Bengal govt to allow hike in liquor price

Kolkata: The International Spirits & Wines Association of India (ISWAI) has urged state govt to allow a hike in liquor prices, amid soaring input costs. According to the industry body, product costs have climbed 10%-20% in recent months as energy-led inflation ripples through the supply chain.

ISWAI CEO Sanjit Padhi said the spirits industry is facing intense pressure from rising packaging and manufacturing expenses, triggered by the conflict in West Asia and the wider global energy and commodity crisis. Sharp swings in oil, gas, coal and petrochemical feedstocks, he said, have pushed up costs across categories, leaving companies with little room to absorb the blow. "In this context, ISWAI has reached out to Bengal govt, seeking a revision in supplier prices, and a representation has been submitted to the excise commissioner. State govt generally asks for new quotation in July-Aug, we would like to request to bring it forward," he added.

Padhi said production of glass bottles, the main packaging format for spirits, has been impacted especially hard since glass manufacturing is energy-intensive. Through 2024-'25 and into early 2026, high soda ash prices and volatile natural gas and coal rates have sharply raised furnace operating costs. That has lifted glass bottle prices by around 11%-17%. Plastic caps and closures have also become costlier.



"Taken together, the cumulative increase across packaging materials represents a weighted average escalation of approximately 15%-20%. Packaging constitutes nearly 40%-50% of total cost of goods sold in the spirits industry (excluding taxes). Impact would be substantial," he added.