Odisha’s Liquor Industry Demands Equality: Indian Manufacturers Call for Fair Policies

The domestic liquor industry in Odisha is feeling the heat. Local manufacturers are asking the new BJP Government to stop favoring foreign alcoholic brands with special tax breaks. They want a fair chance to compete, following the principles of the ‘Atmanirbhar Bharat’ (Self-Reliant India) and ‘Make In India’ movements.

The Confederation of Indian Alcoholic Beverage Companies (CIABC) is particularly upset. They point out that imported drinks like whisky, gin, and vodka are taxed less than high-end Indian brands. For example, in 2022-23, the previous government cut excise duties for imported alcohol but did nothing for local products. This has created an uneven playing field.

Anant S. Iyer, the Director General of CIABC, stressed the need for fair treatment for Indian-made luxury items, such as single malt whiskies and premium rums. He explained, “The state should lower excise duties for our local products to match the rates for foreign imports.”

There’s a significant difference in production costs too. Making liquor in India can be 50-75% more expensive than in countries like Europe. This is largely due to higher costs for materials and production. Iyer warned that as the Indian Government negotiates Free Trade Agreements (FTAs), duties on imported liquors could drop further, making them even cheaper than locally produced options.

This imbalance could hit Indian brands hard, making it crucial for the Odisha government to rethink its tax policies. A fairer duty structure could help consumers make better choices and support the local economy.

The liquor industry plays a vital role in India, supporting over 5 million farmers and employing around 2 million workers. It also contributes significantly to government revenue. Strengthening this sector is essential for ongoing economic growth.

In a recent industry survey, 78% of manufacturers agreed that equal tax treatment could boost local production and sales. With the national focus on economic self-reliance, now is the perfect time for the Odisha government to show support.

Keeping Indian products competitive isn’t just good for businesses; it’s great for consumers and the economy too. The government’s support can pave the way for a thriving and equitable market.

For further reading on the economic impacts of the liquor industry, check this report from the Ministry of Commerce and Industry.

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Indian Liquor manufacturers urge Odisha to end discrimination