AgenciesJohn Distilleries, the maker of Original Choice whisky and Paul John single malt, said it is increasingly becoming difficult to run a profitable liquor company in India due to price control and differences between state and central government in terms of implementing regulations.
"There seems to be no coordination between state and central regulation and nobody wants to take an interest in that. At some point in time, something needs to be done because it's extremely difficult to operate with two sets of rules," said Paul John, the founder of the company.
For instance, he said, while the central government allows up to 50% alcohol strength in whisky and single malts, a few states restrict the percentage to 42%. In addition, the liquor segment in the country is highly regulated, with the government controlling pricing, retail, as well as distribution in several states.
"It is getting worse because, on one hand, we have a lot of price control and regulations on the selling price from the government and, on the other hand, the raw material costs have been shooting up," said John. In 2021, sales of beer and spirits such as whisky, vodka and gin increased 17-18% by volume, the fastest expansion in more than a decade due to a low base and increased in-home consumption, according to the latest data by IWSR Drinks Market Analysis.
"There seems to be no coordination between state and central regulation and nobody wants to take an interest in that. At some point in time, something needs to be done because it's extremely difficult to operate with two sets of rules," said Paul John, the founder of the company.
For instance, he said, while the central government allows up to 50% alcohol strength in whisky and single malts, a few states restrict the percentage to 42%. In addition, the liquor segment in the country is highly regulated, with the government controlling pricing, retail, as well as distribution in several states.
"It is getting worse because, on one hand, we have a lot of price control and regulations on the selling price from the government and, on the other hand, the raw material costs have been shooting up," said John. In 2021, sales of beer and spirits such as whisky, vodka and gin increased 17-18% by volume, the fastest expansion in more than a decade due to a low base and increased in-home consumption, according to the latest data by IWSR Drinks Market Analysis.
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