India is the largest consumer of whisky in the world and Scotch whisky has become less expensive in parts of India since the India-UK trade agreement took effect on July 15. Mint, called it the first price drop since the agreement and said prices fell 10% to 15% in states including Rajasthan, Maharashtra, Goa and Uttar Pradesh.
Diageo and Pernod Ricard, which Mint described as India’s two largest Scotch producers, have started passing lower import costs on to retail prices. Diageo is a global spirits company whose brands include Johnnie Walker, Tanqueray and Smirnoff
Under the agreement, the import duty on British whisky fell to 75% from 150%. It is scheduled to fall to 40% over the next decade.
The tariff cut does not reach the shelf in full. Retail prices also include state excise duties, taxes, distribution costs and retailer margins. Diageo had projected that prices of its bottled-in-origin Scotch range could fall 7% to 9% on a nationally weighted average. Mint reported that the steeper cuts in some states reflect local pricing structures and company decisions rather than the tariff cut alone.
Lower Scotch prices could heighten competition in the premium whisky segment, including with single malts made in India, as the gap between domestic and imported bottles narrows, Mint reported.
Why this matters: the price cuts are the first retail response from the two largest Scotch suppliers to the trade agreement, and an early test of how much of a tariff cut reaches buyers once state taxes apply. Diageo’s national projection was 7% to 9%. The reported cuts of 10% to 15% came in specific states.
