The ongoing conflict between the US and Iran has led to a gas crunch in India, impacting the supply and resulting inflation for various products, including alcoholic drinks.
India imports 90% of its crude oil, with half of the volume coming through the Strait of Hormuz, a narrow chokepoint in the conflict.
Global brewers operating in India have warned of supply disruption and price rise due to the shortage of gas, which is essential for manufacturing and packaging.
The Brewers Association of India has reported a 20% surge in glass bottle prices, and the shortage of gas has forced several glass bottle makers to partially or fully halt operations.
The disruption in Aluminium supply and packaging materials has also led to possible reductions in production and packaging.
The shortage of gas and disruption in supply chain comes as India is heading into its peak summer season, when beer sales typically go up.
The liquor market in India is expected to double by 2030, reaching $15.6 billion ( ₹1,47,600 crore), according to Grand View Research estimates.
