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Boby Kurian

BANGALORE, Jan. 23

THE figures are out. Indian consumers, tipsy on the foreign brands, are increasingly lapping them off the shelves, despite high tariff walls. Imports of alcoholic beverages across all flavours have shot up during April-October 2001, over the corresponding period in 2000 in value terms, according to data collated by the Directorate-General of Foreign Trade (DGFT).

The import of brandy increased a whopping 5,252 per cent by value followed by rum, which moved up 2,929 per cent. The story was the same for whisky and gin.

In value terms, whisky climbed up by 23.04 per cent in the first seven months of the current financial year. Gin imports rose 558.44 per cent. Vodka, however, showed only a marginal increase of 8.74 per cent in April-October 2001, over the equivalent period in 2000.

These figures attributed to the Director-General of Commercial Intelligence and Statistics, Kolkata, goes against the MNC argument that the country's liquor imports would shrink if the present customs duty structure were not overhauled immediately. While lifting quantitative restrictions (QRs) in April last year, the Centre did not reduce basic duty on liquor imports. Instead, the Government imposed fresh additional and special duties, which brought cumulative tax incidence varying between 400 and 700 per cent on every case of spirits imported into the country.

As mentioned, the rise in imports in value is the highest in brandy where the increase registered is 5,251.51 per cent. Brandy worth Rs 17.66 lakh was imported during April-October 2001, as against net imports valued at Rs 33,000 in the corresponding period in 2000. The imports of brandy surged to 8,677 bulk litres in April-July, 2001, compared to 43 bulk litres in the same period of the previous year.

The rum imports by value in April-October 2001, stood at Rs 365.34 lakh, as against Rs 12.06 lakh in the corresponding period of 2000, reporting a 2,929.35-per cent increase. The rise in imports by volume was comparatively modest at 101.89 per cent. The gin imports, which were higher by 558.44 per cent in value terms, rose 466 per cent in volume terms. The imports of whisky by volume increased 38.14 per cent even as its growth in value terms jumped by 23.04 per cent.

Only the import of vodka bucked the trend, slumping by 56.49 per cent in volume terms. However, vodka imports, in value terms, showed a marginal increase of 8.74 per cent. Interestingly, the imports of all spirit flavours, except brandy, are on the upswing since August. The imports of rum, which grew 170 per cent by value between April and July, surged in the months of September and October to touch 2,929 per cent in April-October period of 2001.

It may be noted that MNCs have threatened to haul up India before the World Trade Organisation (WTO) arbitration tribunal if the duty structure on liquor imports is not rationalised in the next Union Budget and Exim Policy.

On the other hand, the domestic companies want the status quo to continue. "The DGFT figures are a confirmation of our worst fears," said a senior official in an Indian liquor company, adding that he expected the Centre to go slow on lowering import duty.

The Centre anyway had time till 2004 to cut import duties to 150 per cent, he pointed out.

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