Liquor Makers Seek Price Hike Amid Soaring Costs From West Asia Crisis

The International Spirits & Wines Association of India (ISWAI) has called on the Karnataka government to allow price revisions for alcoholic beverages, citing unsustainable cost pressures from the ongoing West Asia conflict and global energy market volatility. The association said input costs for packaging, freight, and energy have surged, leaving manufacturers unable to absorb expenses under existing state-regulated pricing.

ISWAI reported an 11–17% rise in glass bottle prices due to higher soda ash, coal, and natural gas costs, while plastic closures have become 15–20% more expensive following a 30% month-on-month spike in global polyethylene prices in early 2026. Transportation and logistics costs have also increased, driven by fuel price swings, further eroding industry margins.

Industry executives, including Sanjit Padhi of ISWAI, Paul John of John Distilleries, and Aditya Khoday of The House of Khoday, warned that the widening gap between input costs and retail prices threatens business viability, supply continuity, and employment. Abhay Kewadkar of Tetrad Global Beverages said the crisis has already led to reputable brands exiting markets, creating openings for illicit trade.

The Karnataka government has not yet responded to the request. ISWAI said it is engaging with state authorities and will continue discussions to secure a balanced price adjustment that sustains the industry and protects excise revenues.