Trade controversy
The consumption of native distilled molasses based whisky in India is encouraged by tariff barriers that impose a significant markup of up to 52.5% on imported whiskies in India. Imported Scotch whisky bottled under its own brand makes up only 1% of the total market share. Vijay Mallya, CEO of the Indian beverage company United Breweries, also sits as a member of the Rajya Sabha, the upper house of the Parliament of India. The substantial tax markup on imported whiskies has been categorized by the Scotch Whisky Association as "pure protectionism".
Under Mallya's direction, United Breweries, with it’s headquarter at Bangalore, has been acquiring a number of noted whisky brands and distilleries in Scotland, including Dalmore, Isle of Jura, and Whyte & Mackay. United Breweries has been increasing production at its Scottish facilities, and has moved to double the production of whisky at Invergordon. Some of the Scotch whisky so produced is used to blend with the Indian molasses whisky.
Khodays is another major manufacturer of alcoholic beverages in India. They are also based at Bangalore and have a number of nationally popular brands under their belt.
Indian distillers, by contrast, accuse the European Community of erecting its own sort of trade barriers by means of rules that forbid the marketing of molasses based spirits as "whisky". Mallya has objected to the EC's refusal of entry to molasses based whiskies, claiming that the "imposition of British imperialism is unacceptable". In a lawsuit brought in India by the Scotch Whisky Association, the Delhi High Court enjoined Indian whisky manufacturers from labelling their product with the words "Scot" or "Scotch".
Manufacturers of Indian whisky
- United Spirits, a division of United Breweries Group
- Amrut Distilleries
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