The International Spirits & Wines Association of India (ISWAI) has urged the West Bengal government to allow a hike in liquor prices, citing 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.
Rising Costs Across the Board
ISWAI CEO Sanjit Padhi stated that 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 have pushed up costs across categories, leaving companies with little room to absorb the blow.
Request for Early Revision
"In this context, ISWAI has reached out to the Bengal government, seeking a revision in supplier prices, and a representation has been submitted to the excise commissioner. The state government generally asks for new quotations in July-August; we would like to request to bring it forward," Padhi added.
Impact on Packaging Costs
Padhi noted that production of glass bottles, the main packaging format for spirits, has been hit 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. This has lifted glass bottle prices by around 11%-17%. Plastic caps and closures have also become costlier.
Weighted Average Escalation
"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). The impact would be substantial," he added.
The industry body hopes that the state government will consider the request to ensure the viability of the sector amid challenging economic conditions.
