CALCUTTA, India, Dec. 20 (UPI) -- India, known for exporting wonderful curries and computer software, is trying to export its whiskey to a skeptical worldwide audience.
In an effort to seek a level playing field, Indian whiskey manufacturers are demanding removal of curbs that currently prevent their product from flowing throughout the European Union, more specifically London.
Industry experts said there is strong demand for Indian whiskey in London and other parts of the U.K., where a large number of Indian restaurants have opened in recent years, and are frequented by non-resident Indians and customers of Indian origin who seek the kind of sunshine liquor distilled back home.
Sources say, these restaurants serve Indian food and whiskey, but EU regulations do not approve import of the spirit from India in view of the technical barriers to trade, or TBT, that have come up in the form of whiskey's definition by the EU.
According to EU regulations, whiskey has to be produced from grain, while Indian whiskey is made from molasses, which is considered to be the cheapest source of neutral alcohol.
Even after agreeing to call it Indian whiskey, EU officials have refused to allow the entry of the molasses-based whiskey. It can be sold only as Indian spirit and not called whiskey, say Indian whiskey manufacturers.
Some, like the All India Distillers Association feels that the EU adopted this move to safeguard their own "whiskey" industry in the wake of the burgeoning popularity of Indian brands.
This, said a spokesperson from All India Distillers Association, prompted the EU to impose a slew of such "non-tariff" barriers, resulting in not a single bottle of Indian whiskey being exported to the EU countries since 1999.
According to the industry, before the barriers were introduced in 1999, India exported 9,440 kg (20,811 lbs) of whiskey in 1997-1998 and 43,164 kg (95,160 lbs) in 1998-1999. Indian whiskey continues to be exported to the Gulf countries, but the EU and UK do not accept the commodity as whiskey in view of their definition.
The EU regulators are not entirely wrong though. Indian whiskey manufacturers admit that India really is yet to reach the capability of producing whiskey on par with international standards.
"It is true that what is sold as Indian whiskey is actually neutral molasses alcohol blended with Scotch malts, which the industry classifies as admix whiskey within themselves," said Raj Jain, chief executive officer of Millennium Alcobev, a subsidiary of the largest alcoholic beverages producers in the country. "Personally, Indian made Vodka is the only Indian alcoholic drink I think is comparable to international standards; the rest are simply bad."
But Indian whiskey manufacturers are undaunted. According to the industry, whiskey producers are making elaborate plans to upgrade their existing brands by using Vatted malt spirit in view of the growing demand for malt blended whiskeys as against neutral alcohol based whiskeys.
The option to import is also being seriously considered by the producers following the dismantling of quantitative restrictions on imported spirits early this year. Domestic tipple sellers feel that it makes immense sense in India, a country which is emerging as one of the fastest growing spirits markets in the world.
Meanwhile, industry sources said that the scotch blended whiskeys were doing well in the country, which has consistently been growing at the rate of 25 percent a year
The growing tippler markets in the country and relaxation of its import restrictions have also attracted the interest of international players. But right now they are busy urging the government for reduction in tariff rate.
On Wednesday, a consortium comprising manufacturers of Scotch whiskey, American bourbon and Canadian whiskey met officials in the Finance Ministry for a reduction of the 700 percent tariff the EU levied on imported spirits, while freeing them for imports. According to manufacturers, such high duties were not compatible with World Trade Organization rules.
But even as international players are keen to profit from the growing tippler market in India, they are not ready for a quid pro quo -- at least not just yet.
"For over 200 years, the U.S., Canada and 57 other countries have regarded whiskey as being made from cereals or grains. Since most whiskey in India is made from molasses, it is put in the category of rum or other spirits," said Deborah A Lamb, senior vice-president of the Distilled Spirits Council of the U.S.
