Overview: Scotch whisky prices are beginning to fall in India following the first tariff reduction under the UK-India trade agreement. Major brands have reportedly become between 10% and 15% cheaper in some states as distillers pass on lower import costs.
The Full Story
The first effects of Britain’s trade agreement with India are being seen on the shelves of drinks retailers. Since the duty on Scotch whisky was reduced from 150% to 75% on 15 July, retail prices of major brands have been lowered by between 10% and 15% as distillers pass on lower import costs. The Times of India reports that these cuts have already taken place in states including Maharashtra, Rajasthan, Goa and Uttar Pradesh, where whisky is a major seller, with reductions in other states expected to follow.
Prices vary depending on the state involved, as individual governments set their own excise rates on alcohol. For instance, a 75cl bottle of Diageo’s Johnnie Walker Black Label is now available for ₹3,800 (£29.85), compared with ₹4,250 (£33.40) only a couple of months ago. Meanwhile, J&B has fallen to ₹1,700 from ₹2,300. According to local sources, Pernod Ricard has applied to regional governments to reduce prices on The Glenlivet, Ballantine’s and Chivas Regal.
What This Means
These reductions offer an early indication of how Scotch prices could fall further to increase competition as the national tariff is lowered to 40% over the next 10 years. Sandeep Arora, founder of Spiritual Luxury Living, noted that the UK FTA will have an impact on existing prices being offered by bottled-in-origin brands. This could lead to a shift in competitive dynamics for other whiskies, including Indian single malts. Industry sources have reported significant cuts designed to bring Scotch brands into price brackets that are more competitive with local whiskies.
Consumer Takeaway
The news offers consumers access to major Scotch whisky brands at reduced retail prices across key markets like Maharashtra and Uttar Pradesh. While none of the importing groups has quantified a direct effect on sales, the cuts are designed to bring Scotch brands into price brackets that are competitive with local whiskies.
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