Demand of domestic liquor industry on India-US trade agreement, said- give us equal opportunity too
PTI, New Delhi. The Association of Domestic Liquor Manufacturers (CIABC) on Saturday said it expects duties on liquor and beverages to be kept in line with the free trade agreements (FTAs) India recently signed with the UK and the European Union (India EU FTA).
According to the framework decided by India and the US for the interim trade agreement (India US Trade Deal), American products ranging from wines and spirits to dry fruits will now enter India either duty free or at reduced import duties.
CIABC made this demand from the government
Urging the Indian government to ensure a "level and fair playing field" vis-à-vis imports, the Confederation of Indian Alcoholic Beverage Companies said it hoped the deal would be "equitable and mutually beneficial" for both countries.
The organization representing India Made Foreign Liquor (IMFL) companies said it was not against the cut in import duty but wanted it to be done in a "phased manner".
CIABC Director General Ananth S Iyer said, "We hope that the government will address the issues raised by us related to removal of non-tariff barriers and provide a level playing field to the domestic industry vis-à-vis imports."
The organization says Indian industry is already at a disadvantage due to high capital, operating costs and restrictive licensing regime compared to manufacturers in developed countries. The CIABC has also requested state governments to "withdraw all excise duty concessions given to imported liquor."
The organization warned that continuing excise concessions along with customs duty cuts would be a "double whammy" for Indian manufacturers. In some states, the tax structure on liquor bottled directly from abroad (BIO) is more favourable, due to which the indigenous industry is lagging behind.
The organization demanded strict measures to stop dumping of imported liquor in the Indian market below cost. Also, he advocated better international market access for Indian products.
Indian products currently face a number of non-tariff restrictions in countries like the UK, EU and Australia. India and the US on Saturday announced an interim trade agreement under which the US will reduce tariffs on Indian goods to 18 per cent from the current 50 per cent, while India will reduce or eliminate tariffs on all US industrial goods and agricultural products including wine-spirits.
Also read- Mukesh Ambani's big bet, bought a big stake in this Australian company; Here are the complete details
Chyawanprash is a part of every Indian's life, it reduces diseases and increases energy.