Beer prices in India likely to be hit by US-Iran conflict, glass bottle rates rise by over 20 percent, Heineken and Carlsberg to cost…

New Delhi: In a major development, global brewers operating in India are warning of price increases and supply disruptions due to a gas shortage owing to the Iran war that drives up the cost of glass

New Delhi: In a major development, global brewers operating in India are warning of price increases and supply disruptions due to a gas shortage owing to the Iran war that drives up the cost of glass bottles. Notably, shipping delays have also affected imports of aluminum needed by can makers. As per the Reuters report, India is vulnerable to fuel availability as the world’s fourth-largest importer of natural gas, relying heavily on the Middle East for shipments, sourcing about 40 percent of its supply from Qatar.

While speaking to Reuters, the Brewers Association of India, representing global brewers Heineken, Anheuser-Busch InBev, and Carlsberg, said, “The glass bottle prices have surged around 20 percent, and paper carton rates have doubled, as well ⁠as other packaging materials such as labels and tape.”

It is important to note that gas is essential to keeping furnaces and production lines running, and shortages have forced several glass bottle makers to partially or fully halt operations. The Reuters report further added that aluminum can suppliers have also warned of possible reductions just as India heads into its peak summer season, when beer sales typically rise.

“We are asking for price increases in the range of 12-15 per cent,” the association’s director general, Vinod Giri, told Reuters. “We have advised our member companies to individually approach states.”

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Notably, the sales of Beer and liquor in India have spiked steadily alongside rising urbanisation and a young, increasingly affluent population. The Confederation of Indian Alcoholic Beverage Companies, which represents many domestic companies, said it has written to several states seeking price adjustments to offset rising freight, logistics and input costs.

India’s alcohol sector is tightly regulated, and any increase in retail prices typically requires government approval. About two-thirds of the country’s 28 states must authorize such changes. “Brewers may find it difficult to maintain supplies in states that do not allow price increases,” the association said.

Talking to Reuters, Nitin Agarwal, CEO of Fine Art Glass Works in Firozabad, a glass-making hub in northern Uttar Pradesh state, said he has cut ⁠production by 40 percent at his glass bottle making factory due to gas shortages. His customers include many liquor companies as well as producers of juice and ketchup bottles.

Situation in India:

India is witnessing the impact on the ground, especially with cooking gas (LPG).
In some cities, delays, long queues, and even suspension of new LPG connections are witnessed.
In many places, people are waiting days for cylinders, and black-market prices have surged
India has prioritised domestic demand over exports, cut industrial gas supply to conserve fuel,
India has also increased LPG production and rerouted shipments and asked citizens to avoid panic buying.
The Modi government has set up special task forces and empowered groups to continuously assess the situation and respond quickly to disruptions in energy, food, and supply chains.

“Lockdown in India” has witnessed a massive surge in top Google searches. Experts are of the opinion that it is largely driven by a mix of Covid-era memories and fresh anxiety over the ongoing West Asia crisis.

The spike coincides with the March 24 anniversary of the 2020 nationwide lockdown announced by Prime Minister Narendra Modi, which continues to remain a deeply etched public memory.

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The Times Of Bengal