Lower import duties are beginning to reach consumers, with some popular Scotch brands already 10–15% cheaper in several states
Scotch whisky prices have started falling in India following the implementation of the India-UK trade agreement, as producers pass on part of the savings from lower import duties to consumers. The first reductions have appeared in several major markets, with further changes expected as states approve revised prices. The Drinks Business
The trade agreement, which came into force on July 15, reduced India’s customs duty on qualifying British whisky from 150% to 75%. The tariff is scheduled to decline progressively to 40% over the next 10 years. GOV.UK
Diageo and Pernod Ricard have already reduced prices for selected brands in states including Maharashtra, Rajasthan, Goa and Uttar Pradesh. Industry reports indicate that some Scotch labels have become 10–15% cheaper, although the extent of the reduction varies between states because of different excise structures and other costs. The Times of India
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Johnnie Walker Black Label, for example, has reportedly fallen to around Rs 3,800 for a 750-ml bottle from Rs 4,250 in some markets
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J&B prices have also declined significantly in locations where revised rates have been approved. The Times of India
Delhi could be the next major market to see reductions. The Delhi Excise Department has asked wholesale licence holders to submit applications for revised maximum retail prices for eligible UK-imported liquor. The department is examining the impact of the lower customs duty before approving new prices. Hindustan Times
However, the tariff cut will not translate into an identical reduction in shop prices. State excise duties, taxes, distribution costs, margins and existing inventories all influence the final retail price.
The lower cost of imported Scotch could also intensify competition in India’s premium whisky segment, including with Indian single-malt producers, as the price gap between imported and domestic brands narrows.
