Beer crisis deepens in India, prices may increase due to Iran war, know the full reason

News India Live, Digital Desk: The ongoing tension between Iran and Israel in the Middle East has now created a stir in the Indian market as well. The heat of this war is now going to reach the beer lovers of India. The supply chain of beer in India has been badly affected due to shortage of raw materials and obstruction in sea routes. Experts believe that if the situation does not improve soon, then in the coming days many big brands of beer may not only disappear from the market, but their prices may also see a huge increase.

Impact on supply of raw materials ‘hops’ and ‘malt’

A large part of the main ingredients required for making beer like ‘hops’ and certain types of ‘barley’ are imported from abroad. Due to the ongoing war in Iran and surrounding areas, cargo ships are having to choose long and expensive routes. This has not only increased the cost of shipping but is also delaying deliveries by weeks. Liquor companies say that the burden of this increase in costs will ultimately fall on consumers.

Crisis of glass bottles and packaging also increased

The impact of war is not limited to raw materials only. The rising prices of crude oil and fuel in the international market have also made the manufacturing and transportation of glass bottles expensive. An increase of 15 to 20 percent is being seen in the input cost (production cost) for beer companies. There is already a gap between the demand and supply of beer in many states of India, which has now been deepened by this war.

Shortage may increase during festive season and summer

As the temperature is rising in India and the wedding and festival season is approaching, the demand for beer is at its peak. This disruption in the supply chain has increased the concern of liquor sellers. Stock of popular brands has started decreasing at many retail stores. If import duties and transportation costs do not come down, state governments may push prices higher by changing excise duties. This situation is an alarm bell not only for beer but also for other imported spirits.