The Indian beer industry has approached the Centre seeking a “short-term regulatory relaxation” in quality control order (QCO) rules for import of beer cans into the country, as it faces a severe shortage of 500 ml aluminium units, according to a PTI report.
The Brewers Association of India (BAI) in a letter to the Department for Promotion of Industry and Internal Trade (DPIIT) said that it is facing a deficit of 12-13 crore 500 ml units, which comprise around 20 per cent of total beer sales in the country.
BAI represents leading beer manufacturers AB InBev, Carlsberg, and United Breweries, which together account for 85 per cent of beer sold in India. It also said that the situation may lead to ₹1,300 crore shortfall in government revenues.
Why is there a shortage of aluminium cans?
Since April this year, aluminium cans require mandatory certification of the Bureau of Indian Standards (BIS), which has caused a short-term supply gap for the beer and wider beverage industry in India.
Usual suppliers, Can-Pack India and BALL Beverage Packaging India, have exhausted their domestic supplies and alerted of supply shortage for the next six to 12 months, at least, as per the report.
Due to the mandatory BIS certification, import of can from abroad could also be delayed by months, creating a likely disruption for the beer industry, as per the association.
Besides the low domestic supply, due to the QCO, the beer industry cannot import cans from foreign vendors without BIS certification,and even once sourced, the process could take several months.
