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Cheaper Scotch raises stakes for desi whisky

By · Via Times of India · Published by Everything Blog

In short

Slashed tariffs have enabled bottled-in-India Scotch brands to retail at a fraction of the cost of domestic craft spirits, such as J&B Rare selling for half the price of local Huli rice malt whisky in Bengaluru. Drinks research firm IWSR warns that the price gap between blended imports and homegrown options will narrow even more as retail prices dip by an estimated 8% to 10%. Meanwhile, Commerce Secretary Rajesh Agrawal recently pledged to protect duty benefits as officials address classification disputes over bulk imports. Expensive spirits remain rare, however, with the premium-and-above segment accounting for under 1% of total whisky volume in 2025.

Key points

  • Craft distillers relying on domestic ingredients like paddy and jaggery face intensified…: Craft distillers relying on domestic ingredients like paddy and jaggery face intensified competition from cheaper imported blends.
  • An industry executive estimated that the reduced tariffs could ultimately lower retail wh…: An industry executive estimated that the reduced tariffs could ultimately lower retail whisky prices by approximately 8% to 10%.
  • IWSR data shows the premium-and-above whisky segment priced at Rs 2,899.01 or higher repr…: IWSR data shows the premium-and-above whisky segment priced at Rs 2,899.01 or higher represented less than 1% of Indian volume consumption in 2025.

Sources checked by our analysis pipeline: 1

BENGALURU: Cheaper Scotch is putting Indian whisky makers under pressure, even as lower import duties offer savings to companies that use it in their blends. For small distillers that make their own spirits, an imported label can now cost substantially less than a locally made bottle.

Huli's rice malt whisky was launched in Karnataka at Rs 2,650 for 750ml. By comparison, J&B Rare was priced at Rs 1,375 at Bengaluru retailer Tonique in October, according to TOI's earlier reporting. At these prices, J&B Rare cost Rs 1,275 less, or about half as much. Tonique said the price had fallen from Rs 2,835, attributing the reduction to local bottling.

"The smaller players will not be able to survive," said Huli Spirits founder Aruna Urs. Her Mysuru distillery makes spirits from locally sourced paddy and jaggery and does not import Scotch.

Arun Kumar Parasa of Unistil Alcoblends said falling Scotch prices had adversely affected the Indian single malt industry. Lower duties on bulk Scotch imported by some small and medium distilleries would benefit them "very marginally", he said.

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