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DGFT leaves distillers high and dry

Rashmi Das

The Directorate-General of Foreign Trade has turned down the plea of domestic liquor companies on designated ports for import of bottled liquor.

Commerce and industry ministry officials said that the designated ports would go against the principles of a level-playing field since the government has levied sufficient additional customs duty besides retaining the basic customs duty.

The All India Distillers' Association has been lobbying for the designated ports, to serve as limiting entry points for import of bottled liquor in the post-WTO regime. The rationale was that this would control the flooding of Indian markets by cheap imports.

As per the exim policy, the representatives of domestic liquor companies were told that a committee, headed by the commerce secretary, has been set up to monitor sensitive items' imports.

"The panel will also monitor the import volumes of bottled liquor. If there is any apprehension, the policy can be reviewed later," they said.

The domestic industry is also lobbying for the export of Indian whisky to European markets. According to sources, the issue was raised in the last ministerial meeting of WTO and is expected to feature in the next meeting also.

Indian whisky is not allowed in European and the American markets since it is molasses-based. At the earlier negotiations, it was contented that European whiskies are grain-based and have greater health content.

AIDA has been asked by the ministry to prepare a document to build a case for the export of Indian made foreign liquor brands.

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