India plans liquor talks over Scotch tariff dispute

India’s Commerce Ministry plans to meet domestic and international liquor companies as it investigates whether bulk Scotch whisky imports qualify for the reduced tariff under the India-UK trade agreement. The pact lowered duties on certain Scotch imports from 150% to 75%, but authorities say bulk shipments fall under a customs category that remains subject to the higher rate. Diageo, Pernod Ricard and Indian industry groups oppose excluding bulk Scotch, saying it could disrupt domestic blending and bottling, strain manufacturers and undermine the trade deal’s intended benefits. About 80% of Scotch imports from Britain arrive in bulk for use in products made in India, making the classification dispute significant for the local industry. Britain has said it is working with India to address the issue.