The Hindu reports: International Spirits & Wines Association of India (ISWAI) has sought urgent intervention from the government of Karnataka to address the escalation in input and packaging costs being faced by the spirits industry due to the ongoing conflict in West Asia, and the resulting global energy and commodity crisis. Padhi stated.Glass bottles, the primary packaging format for spirits, have been severely impacted owing to the energy-intensive nature of glass manufacturing. During 2024–25 and continuing into early 2026, elevated soda ash prices coupled with volatility in natural gas and coal have significantly increased furnace operating costs.
As a result, glass bottle prices have risen by approximately 11–17%.Similar inflationary pressures are being witnessed in plastic caps and closures, where HDPE and PP resins form a major share of manufacturing costs. During February–March 2026, global polymer markets saw steep increases, with polyethylene prices rising nearly 30% month-on-month, alongside upward revisions in domestic HDPE and PP prices. This has translated into a 15–20% increase in cap and closure costs, according to ISWAI.John Distilleries Chairman Paul John told The Hindu that a balanced and pragmatic approach towards price revisions in regulated markets would help support business sustainability.“The AlcoBev sector is at a breaking point,” said Abhay Kewadkar, Director, Tetrad Global Beverages and former CEO at UB Wines.
Background
He said the current scenario has triggered damaging consequences such as market destabilisation under which reputable brands were forced to exit businesses, thus creating space for illicit activities.Aditya Khoday, Director, The House of Khoday, said the volatility in fuel prices has also resulted in a steep increase in transportation and logistics costs.Mr. Khoday said that the widening gap between input costs and realisable prices is steadily eroding margins and pushing the industry towards an unsustainable position.
Key facts
- Padhi stated.Glass bottles, the primary packaging format for spirits, have been severely impacted owing to the energy-intensive nature of glass manufacturing.
- During 2024–25 and continuing into early 2026, elevated soda ash prices coupled with volatility in natural gas and coal have significantly increased furnace operating costs.
- Khoday said that the widening gap between input costs and realisable prices is steadily eroding margins and pushing the industry towards an unsustainable position.
Originally reported by The Hindu. This story has been edited and re-presented by BRIC Team.
