Recent media articles have reported that the Ministry of Commerce & Industry has recommended a reduction in per passenger allowance of import of liquor at arrival Duty Free stores at all Indian airports, along with a complete ban on sale of cigarettes through Duty Free stores. Such a move will have disastrous effects on the Indian Aviation Industry across all stakeholders including airports, airlines, passengers and Duty-Free operators.
APAO has vehemently opposed the proposed move to reduce liquor allowance from 2 litres to 1 litre and to do away with import of cigarettes presently one carton of 100 sticks.
As per APAO, it will harm the entire aviation ecosystem comprising of airports, airlines, duty free operators and AAI and does not help in any way in improvement in balance of payments. Share of import of liquor for sale to arrival passengers in total import is miniscule i.e. 0.0213%. Even doing away with entire imports will not serve any purpose. The same ministry is recommending reduction in import duty on gold to mitigate illegal import. With the same logic the proposal will enhance smuggling of imported liquor and encourage passengers to buy more at departure airports globally, resulting in higher foreign exchange outflow.
Another argument given by the APAO is that liquor import is within the overall limit of Rs. 50,000 available to passengers and hence any reduction in liquor quota will result in shift to import of other items thereby making the entire exercise to improve balance of payments ineffective.
APAO elaborated that present limit of ₹50,000 was ₹25,000 in the year 2004. Considering rupee depreciation vis-à-vis USD, of 162% during the said period, in real terms limit is reduced by 23% which will further reduce considering USD inflation.
هذه القصة مأخوذة من طبعة December 2020 من Ambrosia.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة December 2020 من Ambrosia.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
E-commerce In Alcohol Is The New Route To Market Strategy
Post Covid e-commerce could help the industry out of a crisis. But in the new normal the growth rate may not be high. A report.
Processes for alcohol-free beer production: A review
Carlos MULLER1 Luis Eduardo NEVES1 Luciana GOMES1 Munique GUIMARÃES1 Grace GHESTI1 * http://orcid.org/0000-0003-1043-5748
The US and China offer resilience and opportunity for drinks groups
Strong performances in China and the US have shielded multinational drinks companies from the fallout of Covid-19 in recent months. IWSR examines the reasons why.
Increasing demand for nostalgic flavours in drinks
Nostalgic flavours such as peanut butter, lemonade and chocolate have become increasingly popular during the pandemic. IWSR looks at how the trend is manifesting in different beverage categories.
‘80% of the International Awards won by Indian wines are from Karnataka'
The Wine market in India is still in its infancy but is growing at a much faster rate as compared to any other category/ segment. Grover Zampa, the second biggest manufacturer of Wines in India has been on a spending spree acquiring wineries in India to increase their presence in the market. In an interview with Ambrosia, Ravi Vishwanathan, Chairman, Grover Zampa Vineyards speaks about his investments, the Indian market and the possibilities for the future. Excerpts:
Trends in alcohol consumption in Europe continue their positive course
Over recent months, we have seen very welcome findings on drinking behaviours released by leading health authorities across Europe, particularly with regards to the decline in underage drinking. This contrasts sharply with misleading coverage which often suggests that overall consumption is dangerously on the increase, in particular since the pandemic started, writes spirits Europe Director General Ulrich Adam.
Pernod Ricard and Brown Forman Merger Speculation
As speculation mounts about the strategic merger between Pernod Ricard & Brown & Forman, we look at the far reaching consequences of the deal.
Glasgow Whisky announces distillery purchase to expand global business
The company is expanding its wings with an environmentally sustainable and energy efficient distillery
Excise revenues save the day for Maharashtra and Karnataka
The pandemic has not much changed consumption levels of liquor in Maharashtra, though the excise department may fall short of the excise revenue target of ₹19,225 crores for 2020-21. Home delivery of liquor in Maharashtra has done exceedingly well as it has earned almost equal revenue for the State as compared to last year.
Bacardi adds flavour to Indian market
Over the past few years, Bacardi has further strengthened its position in India as a premium brand. Known for its diverse brand portfolio, Bacardi aims at bringing superior quality spirits to the market. Zeenah Vilcassim, Marketing Director, Bacardi India, unveils her strategy for the Indian market.
