Liquor Prices Set to Surge in India as Global Supply Chain Crisis Hits Bottle Production

New Delhi: Alcohol prices in India are on the brink of a sharp increase as global supply chain disruptions begin to hit the industry hard, particularly impacting glass bottle production. If the trend continues, liquor consumers across the country could soon feel a significant pinch in their pocket

The crisis stems not from the cost of raw materials used in making alcohol, but from skyrocketing packaging expenses. Industry insiders warn that the cost of producing glass bottles — a critical component in liquor packaging — has surged dramatically due to energy constraints. Glass manufacturing relies heavily on continuous furnace operations, which require a steady supply of natural gas. India, which depends on imports for nearly 40% of its natural gas needs, sources a significant portion from Qatar. However, ongoing geopolitical tensions and supply disruptions have severely impacted gas availability, sending prices soaring

Glass manufacturing relies heavily on continuous furnace operations, which require a steady supply of natural gas. India, which depends on imports for nearly 40% of its natural gas needs, sources a significant portion from Qatar. However, ongoing geopolitical tensions and supply disruptions have severely impacted gas availability, sending prices soaring. As a result, glass bottle production has taken a direct hit. According to industry estimates, bottle prices have already jumped by 15–20%, driven by rising commercial gas rates and supply shortages.

The impact on the liquor industry is substantial. Packaging accounts for nearly 40% of production costs in beer, while for spirits such as whisky and brandy, it contributes around 20%. With bottle costs escalating, manufacturers are left with little choice but to pass the burden onto consumers. Industry experts, including Rajesh Chopra, Director General of the Indian Malt Whisky Association, have sounded the alarm, warning that sustained cost pressures could lead to unavoidable price hikes in the coming months.

For millions of consumers hoping to beat the summer heat with a chilled drink, this could mean a harsh reality check. What was once an affordable indulgence may soon become a costly affair, as global disruptions ripple through to local markets