War Impact: Rising Costs Threaten Beer and Wine Supply in India
Middle East War Hits India’s Beer and Wine Industry: Prices Likely to Increase: The ongoing conflict in the Middle East is beginning to impact India’s economy, with disruptions in oil and gas imports affecting multiple sectors. Industries dependent on petroleum and natural gas are facing rising costs and operational challenges, with the hospitality and alcohol sectors among the worst hit.
According to the Brewers Association of India, shortages of natural gas have severely affected the production of glass bottles and aluminum cans—both critical for packaging beer and wine. Since a significant portion of India’s gas imports comes from Qatar, supply disruptions have reduced manufacturing capacity.
Industry experts say glass bottle production has dropped sharply, pushing prices up by nearly 20% compared to last year. This, combined with higher input and operational costs, is expected to increase wine prices by 12–15% in the near future.
Manufacturers are also struggling with reduced output. Vinod Giri noted that rising costs have made price hikes unavoidable. Meanwhile, Nitin Agarwal revealed that his company’s production has fallen by around 40% due to gas shortages, further tightening supply.
With summer approaching—a peak season for beer consumption—consumers are likely to face higher prices due to limited availability and increased packaging costs. India, one of the world’s largest liquor markets, continues to see steady growth, but the current crisis highlights its vulnerability to global energy disruptions.
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