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Scotch producers sour over Indian duties

Scotland's whisky producers called on the European Commission and the British government on Tuesday to probe what they alleged were five clear breaches of international trade agreements by India.

The Scotch Whisky Association said New Delhi had lifted a long-term import ban on Scotland's national tipple at the beginning of April -- only to replace it with a series of duties which amounted to a 706 per cent levy on some drinks.

Under its commitment to the World Trade Organisation, India should reduce the tariff on imported spirits from 222 per cent to 150 per cent by 2004, but the SWA said it saw no signs this was happening.

"The Indian government is circumventing its WTO commitments to protect its domestic industry which has long been shielded from international competition," said Tim Jackson, SWA's director of international affairs.

Such protectionist measures had given domestic producers a 99 per cent share of India's spirits market, which amounts to 780 million bottles per year, Jackson said.

Despite the concerns, scotch is slipping down well with spirits lovers around the world, helping lift annual sales three per cent to 2.16 billion pounds ($3.08 billion) last year.

Its growing popularity in the bars and clubs of southern Europe and an economic recovery in southeast Asia are reasons for the increase.

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