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ISWAI seeks Karnataka intervention as West Asia crisis drives liquor packaging costs
The International Spirits & Wines Association of India (ISWAI) has urged the Karnataka government to intervene to offset rising input and packaging costs driven by the West Asia crisis and global commodity volatility. The association cites significant inflation in glass bottles and polymer-derived packaging materials, urging price revisions to sustain viability and employment.
Why It Matters
Rising costs threaten profitability, potential supply disruption, and state excise revenues. Inaction could push brands to exit or inadvertently encourage illicit activity in the sector.
Timeline
5 Events
Industry leaders warn of market destabilisation and illicit activity risk
May 11, 2026
Industry voices including Paul John (John Distilleries), Abhay Kewadkar (Tetrad Global Beverages), and Mr. Khoday warned that rising input costs could erode margins and push reputable brands to exit, potentially creating space for illicit activity.
Sanjit Padhi emphasizes pricing revisions for viability
May 11, 2026
ISWAI CEO Sanjit Padhi stated that states should consider a balanced approach toward price revisions in regulated markets to maintain business viability, safeguard employment across the value chain, and sustain the industry’s contribution to state excise revenues.
ISWAI urges Karnataka to intervene in price revisions
May 11, 2026
ISWAI called on the Karnataka government to intervene and consider a balanced approach toward price revisions in regulated markets to maintain business viability, protect employment, and sustain excise revenues.
Packaging costs linked to polymer price hikes (Feb 2026)
February 2026
In February 2026, global polymer markets surged, with polyethylene prices rising nearly 30% month-on-month and domestic HDPE and PP prices also rising, leading to a 15–20% increase in cap and closure costs for packaging.
Glass bottle prices rise during 2024–25
2024
Glass bottle prices rose by approximately 11–17% during 2024–25 due to elevated energy costs from soda ash prices and volatility in natural gas and coal, increasing furnace operating costs for glass manufacturing.