Alcohol stocks crashes up to 7% after India cuts tariff on US whiskies

The Indian Government has reduced the import duties on US bourbon whiskies, making them cheaper in India. The updated tariffs will impose a basic customs duty of 50 percent on bourbon whiskey, with an additional 50 percent surcharge, resulting in a total tariff of 100 percent. This is still lower compared to the previous 150 percent rate.

However, the revised tariff applies specifically to bourbon whiskies that are made and aged exclusively in the United States. Other alcoholic drinks will continue to be taxed at the former 150 percent rate.

Major global liquor brands such as Diageo and Pernod Ricard, prominent players in India’s $35 billion spirits industry, have repeatedly expressed concerns about the country’s high import taxes on foreign alcoholic beverages.

This move follows criticism from US President Donald Trump regarding India’s high tariffs on American products, which he labelled as “unfair” trade taxes. 

After his recent meeting with Prime Minister Narendra Modi at the White House, Trump has been vocal about the challenges faced by US businesses in India. He has also warned of potential reciprocal tariffs on countries that impose high duties on US goods, with India being one of the nations targeted.

Following are a few alcohol stocks that might have experienced a decline during Monday’s trading session as a result of India reducing tariffs on US whiskies:

1. United Breweries Limited

With a market cap of Rs. 53,633.3 crores, the shares of the largest beer manufacturer in India fell by nearly 2 percent to hit an intraday low at Rs. 1,998.75 on BSE.

The shares of United Breweries have delivered positive returns of around 15 percent in the last one year, as well as around 4 percent returns in the last one month.

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2. United Spirits Limited

With a market cap of Rs. 97,926.8 crores, the shares of one of the leading beverage alcohol companies in India fell by nearly 2 percent to hit an intraday low at Rs. 1,337.45 on BSE.

The shares of United Spirits have delivered positive returns of around 16.4 percent in the last one year, but around 5.6 percent of negative returns in the last one month.

3. Globus Spirits Limited

With a market cap of Rs. 2,407.5 crores, the stock fell by nearly 4.3 percent to hit an intraday low at Rs. 819.9 on BSE.

The shares of Globus Spirits have delivered positive returns of around 4.3 percent in the last one year, as well as around 4.6 percent returns in the last one month.

4. Radico Khaitan Limited

With a market cap of Rs. 25,702.8 crores, the shares of one of India’s oldest and largest IMFL companies fell by nearly 6.7 percent to hit an intraday low at Rs. 1,903.9 on BSE.

The shares of Radico Khaitan have delivered positive returns of around 11 percent in the last one year, while around 16 percent of negative returns in the last one month.

Written by Shivani Singh

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