While India’s whiskies are leading in taste evaluations, their global exports have not seen significant growth, hindered by various factors, including strong domestic demand.
In FY23, the value of whisky exports was just 10% higher than a decade ago, while imports during this period surged nearly four times. Notably, whisky exports recorded an 18% increase in the first five months of the current fiscal year compared to the corresponding period a year ago.
During October, the domestically produced Indri Diwali Collector’s Edition secured the Best in Show Double Gold award at the Whiskies of the World Awards. Nevertheless, authorities have indicated that India has not fully capitalized on the opportunities presented by this accolade and the esteemed recognition received by other brands like Amrut Distilleries’ Fusion and Paul John’s Brilliance, Bold, and Nirvana.
“Indian whisky is not much in demand outside, and domestic demand is robust, so the export opportunity hasn’t been exploited to the fullest,” said an official.
In the fiscal year 2023, India’s whisky exports stood at $124 million, marking a modest 10% increase from the $112.4 million recorded in FY14. However, these figures remained below the $127.8 million exported during the pandemic period.
Conversely, there has been a notable increase in imports.
In FY23, India’s whisky imports reached $396.3 million, marking a substantial increase from the $108.7 million recorded in FY14.
Blended whiskies held the largest market share at 40%, followed by other whiskies with a 29% share. Scotch claimed a 20% share, with bourbon holding a marginal slice.
The primary sources of imports are the UK, Singapore, and the UAE.
Growth may also be hindered by stringent requirements imposed by Western nations, according to experts.
“India’s export opportunity is limited to a certain set of countries in the Middle East, Africa and the Far East. Maturation conditions imposed by a large part of the European Union are inherent limitations to our exports,” said Confederation of Indian Alcoholic Beverage Companies (CIABC) director general Vinod Giri.
In warm climates such as India, the maturation requirement, which stipulates a three-year aging period for whisky, is often shortened due to high evaporation losses.
Giri mentioned that there is a demand for relatively lower-value Indian rum and whisky in these countries. While single malt and high-end products are sold at a comparable price range of $50-60 per case, akin to Scotch whisky, lower-value products are marketed at $10-20 per case, as he pointed out.
Indian blended whiskies are priced between INR 750-1,700 per 750 ml, whereas imported counterparts range from INR 1,400-3,000. For malt whiskies, both Scotch and Indian variants share a pricing bracket of INR 3,630-4,500.
“Japanese whisky brands are also being preferred by Indian consumers and many independent importers are entering the market,” Giri added.
Representatives from the industry have indicated that growth is also being impeded by local factors.
They mentioned that some states impose a fee on the export of alcoholic beverages. Additionally, India’s exports to the EU and UK face non-tariff barriers. One notable obstacle is the stipulation of grain-based spirit, a requirement Indian companies cannot meet as the liquor here is produced from molasses due to the high sugar production, they clarified.
