Beer industry seeks import relaxation over shortage of aluminium cans

New Delhi: The domestic beer industry, which has been facing an acute shortage of aluminium cans and fearing an impact on growth trajectory, has urged the government for a 'short-term regulatory relaxation' in quality control norms to ensure uninterrupted supply from overseas.

The beer industry is facing an annual deficit of 12-13 crore units of 500 ml cans, which account for almost 20 per cent of total beer sales in the country, and it may also lead to a shortfall of around Rs 1,300 crore in government revenues, according to the Brewers Association of India (BAI).

Aluminium cans were brought under the ambit of mandatory BIS (Bureau of Indian Standards) certification by the government from April 1, 2025, through a quality control order (QCO), which has resulted in short-term supply problems for beer as well as other beverage packaging industry in the country.

Key aluminium can suppliers, BALL Beverage Packaging India and Can-Pack India, have already exhausted their domestic capacity at their manufacturing units in India and have conveyed that they will be unable to increase supply for at least another 6-12 months, until new production lines are added.

Besides, due to the QCO, the beer industry cannot import cans from foreign vendors as the BIS certification could take several months, creating a risk of supply disruption.

BAI, which represents three leading beer makers -- AB InBev, Carlsberg, and United Breweries -- together accounting for 85 per cent of beer sold in India, has approached the government seeking a relaxation in QCO norms for a year.

Recently United Breweries Ltd (UBL) Managing Director and CEO has also flagged this issue in an interview with PTI.

For the industry, the challenge is supplies "more than the inflation, especially on the packaging material, because we have a can shortage in India".

In a letter to the Department for Promotion of Industry and Internal Trade, BAI has requested the "implementation of QCO mandating BIS certification for imported aluminium cans is deferred to 1st April 2026 to provide sufficient time for domestic suppliers to build local manufacturing capacity".

This extension will provide sufficient time for domestic suppliers to build local manufacturing capacity.

The government has granted an extension to suppliers for importing aluminium cans without BIS certification till 30th September 2025, however, according to BAI, this is not sufficient to be able to import cans in to the country.

BAI has also requested "to allow import of cans without BIS certification by international suppliers who have submitted their BIS certification application along with required documentation until the time their applications are processed".

This transitional arrangement will avoid business disruption while upholding regulatory oversight, said BAI Director General Vinod Giri in the letter.

According to BAI, the beer industry operates over 55 breweries, in which it has invested around Rs 25,000 crore, employs over 27,000 people, and creates an economic impact through farmers, ancillary units, and is facing short-term supply problems.

"However, this expansion is expected to take at least 12 months, and the recently granted one-month extension, although welcome, is not sufficient to build local capacity NOR import cans from other countries to meet the shortfall."

The ongoing shortage of aluminium cans is not only a supply chain challenge for brewers but also poses a significant threat to government revenues, especially state excise. We estimate that the combined loss to central and state governments could range between INR 1,200 – 1,300 crores annually," it said.

This includes loss of excise and VAT revenue at the state level and GST contributions at the central level.

"In addition, this shortage also has a broader economic impact with operational impacts across allied industries such as agriculture, packaging, logistics, and retail," said BAI.