A fuel disruption linked to the Iran conflict has tightened natural gas supplies, raising costs for key materials such as glass bottles and aluminum cans, because of which India’s beer drinkers may soon face higher prices and possible shortages, Reuters has reported.
India, the world’s fourth-largest natural gas importer, depends heavily on the Middle East, with about 40% of its supply coming from Qatar. According to Reuters, recent attacks have partially affected Qatar’s export capacity, squeezing availability for Indian manufacturers.
Brewers say the impact is already visible. The Brewers Association of India, which represents beer makers such as Heineken, AB InBev and Carlsberg, reported a roughly 20% jump in glass bottle prices, while paper cartons have doubled in cost. Other packaging materials have also become more expensive, the agency reported.
Gas shortages are forcing some glass manufacturers to scale back or halt production, creating further supply pressure. Aluminum can suppliers have also warned of possible constraints just as peak summer demand approaches.
“We are asking for price increases in the range of 12–15%,” the association’s Vinod Giri told Reuters, adding that companies are approaching state authorities individually for approvals.
Nitin Agarwal, CEO of Fine Art Glass Works in Firozabad, a glass-making hub in northern Uttar Pradesh state, has been quoted as saying that he has cut production by 40% at his glass bottle-making factory due to gas shortages. His customers include many liquor companies as well as producers of juice and ketchup bottles, Reuters reported.
India’s tightly regulated alcohol market requires state-level clearance for price hikes, which could delay adjustments. Brewers warn supply could suffer in regions that refuse increases.
The strain extends beyond beer. Glassmaker Fine Art Glass Works has cut output by 40% and raised prices, while bottled water producers have already increased prices by about 11%. A beverage executive told Reuters the situation remains serious, with limited inventory buffers in place.
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Naresh Khanna – 10 February 2025
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