Alcohol body seeks better market access for Indian products in EU markets

The CIABC has demanded that the EU should remove the non-tariff barriers which prevent the vast majority of Indian products from being sold in the EU

While noting efforts by the European Union (EU) to gain better access to the Indian alcoholic beverages market, an alcohol association has sought improved market access for Indian products in the region.

The Confederation of India Alcoholic Beverage Companies (CIABC) has demanded that the EU should remove the non-tariff barriers which prevent the vast majority of Indian products from being sold in the EU.

CIABC, which has been constantly raising its concerns with the government on the matter, also reiterated that the trade deal with the EU on alcoholic beverages should be no different from that with the UK, negotiations for which are currently underway.

CIABC Director General Vinod Giri pointed out that the most notable condition is that for a product to qualify as whisky, it must be matured for a period not less than three years under the EU Regulation, and for brandy, for one year.

“It has been highlighted several times, along with scientific substantiations, that such long maturation is not applicable under the warm Indian climate," he said.

Giri pointed out that it effectively constitutes a non-tariff barrier, as long maturation increases the cost of Indian products by 30-40 per cent since spirit evaporates at 10-15 per cent every year under the Indian climate (compared to 1-2 per cent in Europe) and the cost of capital deployed during maturation (8-10 per cent per annum in India compared to 2-3 per cent for Europe).

He said the association firmly believes that if the EU does not repeal the law pertaining to maturation, any trade agreement will be one-sided, favouring only the EU, and will do nothing for the Indian industry.