Liquor stocks fall up to 12% as EU wines get duty cuts
Shares of Sula Vineyards, Radico Khatain, United Spirits, United Breweries, and Globus Spirits tumbled up to 4% as European wines are set to enter the Indian market at lower prices under the bilateral free trade agreement as India will provide import duty concessions under the pact, PTI reported, citing an official.
Under the pact, the duty on EU wines would fall from 150% to 20% (for expensive ones). For wines below 2.5 euros, there will be no duty concessions. The development gains significance as this will likely heat up competition for Indian manufacturers.
In today’s session, Sula Vineyards was the worst performer, tumbling 4% to their day’s low of Rs 186.50 on the BSE. Radico Khaitan shares declined 3% to Rs 2,877 per share, while United Spirits shares slipped as much as 2.5% to Rs 1,300 per share on the BSE. United Breweries shares slipped 3% to Rs 1,401, while Globus Spirits shares were down 3% to Rs 897.
Indian wines are also set to benefit from duty concessions in European Union member countries following the conclusion of negotiations for a long-pending free trade agreement between India and the EU.
Under the agreement, India will extend duty concessions to wines from the European Union, broadly in line with the commitments made under its trade agreements with Australia and New Zealand, though with slightly lower thresholds. Wine was a key demand for the EU during the negotiations. An official said the tariff reductions for EU wines will be implemented in a calibrated manner, with duties being phased down over a period of seven years, the PTI report added.
At the same time, Indian wines will gain improved market access in EU member countries. The EU has agreed to eliminate duties on Indian wine, which officials said could help cater to demand from the growing Indian diaspora in Europe. “Like automobiles, wine is one of the biggest exportable items for the Indian industry. For them, this agreement is very important,” the official said.
India has followed a similar approach to that adopted in its free trade agreements with Australia and New Zealand, where wine tariffs are reduced gradually over a longer period. In the Australia deal, tariffs fall progressively over 10 years, and comparable timelines have been provided for the wine sector in the agreement with the EU.
In the alcoholic beverages segment, India’s exports to the EU include wines worth $1.4 million in 2024–25 and blended whiskies, vodka, brandy and liqueurs valued at $24.5 million. Imports from the EU include wines worth $7.9 million, along with blended whiskies, brandy, gin, tequila, vodka and liqueurs amounting to $87.8 million.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
Under the pact, the duty on EU wines would fall from 150% to 20% (for expensive ones). For wines below 2.5 euros, there will be no duty concessions. The development gains significance as this will likely heat up competition for Indian manufacturers.
In today’s session, Sula Vineyards was the worst performer, tumbling 4% to their day’s low of Rs 186.50 on the BSE. Radico Khaitan shares declined 3% to Rs 2,877 per share, while United Spirits shares slipped as much as 2.5% to Rs 1,300 per share on the BSE. United Breweries shares slipped 3% to Rs 1,401, while Globus Spirits shares were down 3% to Rs 897.
Indian wines are also set to benefit from duty concessions in European Union member countries following the conclusion of negotiations for a long-pending free trade agreement between India and the EU.
Under the agreement, India will extend duty concessions to wines from the European Union, broadly in line with the commitments made under its trade agreements with Australia and New Zealand, though with slightly lower thresholds. Wine was a key demand for the EU during the negotiations. An official said the tariff reductions for EU wines will be implemented in a calibrated manner, with duties being phased down over a period of seven years, the PTI report added.
At the same time, Indian wines will gain improved market access in EU member countries. The EU has agreed to eliminate duties on Indian wine, which officials said could help cater to demand from the growing Indian diaspora in Europe. “Like automobiles, wine is one of the biggest exportable items for the Indian industry. For them, this agreement is very important,” the official said.
India has followed a similar approach to that adopted in its free trade agreements with Australia and New Zealand, where wine tariffs are reduced gradually over a longer period. In the Australia deal, tariffs fall progressively over 10 years, and comparable timelines have been provided for the wine sector in the agreement with the EU.
In the alcoholic beverages segment, India’s exports to the EU include wines worth $1.4 million in 2024–25 and blended whiskies, vodka, brandy and liqueurs valued at $24.5 million. Imports from the EU include wines worth $7.9 million, along with blended whiskies, brandy, gin, tequila, vodka and liqueurs amounting to $87.8 million.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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