CIABC urges govt to set up export promotion council for alcoholic beverages

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Liquor industry body CIABC has requested the government to set up an export promotion council for alcoholic beverages under the aegis of the commerce ministry to promote the outbound shipments of the sector.

The Confederation of Indian Alcoholic Beverage Companies (CIABC) has sent a communication to the government in this regard.

CIABC Director-General Vinod Giri said the sector needs support for improving the exports, especially in the context of free trade agreements, where alcoholic beverages are part of the wish lists of several countries like the UK and the European Union.

Currently, India exports around 7 million cases only and bringing the sector under these agreements will open up opportunities for India also.

"A concerted effort and mechanism are required to promote exports of alcohol from India. Therefore, I think it is time for the government to consider setting up a body like the Alcoholic Beverages Export Promotion Council,” Giri said.

As per estimates, the global alcoholic beverage trade stood at over USD 200 billion and India’s share is less than half a per cent.

The major global players in the sector include France, the Uk, US and Mexico.

Giri said that India has large distillation capacity as well as several unique products such as Fenny and Mahua spirits, and exports of these can be promoted in a systematic manner.

India’s major export destinations include Africa, the Middle East and Asia.

"These are relatively low-value exports. Markets with high-value potential such as the EU, UK, and Australia are mostly outside Indian exports due to regulatory hurdles that the government is trying to address in FTAs. Once such issues are resolved, much bigger high-value opportunities will open up,” he added.

Further, he said that a boost in exports will also support the sugarcane industry of the country.

There are several export promotion councils for various sectors, such as plastics, pharma, chemicals, and textiles, which are coordinating India’s targeted efforts to increase exports in their respective sectors, Giri said.