The Indian beer industry is battling a growing packaging crisis, with a shortage of aluminium cans that could soon impact both production and tax revenues. The Brewers Association of India (BAI) has urged the government to grant temporary import relaxations to prevent a potential slowdown in one of the country’s fastest-growing beverage sectors.
The Scale Of The Crisis
The industry faces a shortage of 12 to 13 crore units of 500 ml cans, which account for nearly 20 percent of total beer sales in India. This shortfall could translate into a loss of over ₹1,300 crore in government revenue through excise, VAT, and GST collections, according to estimates by BAI.
India’s top two aluminium can producers, BALL Beverage Packaging India and Can-Pack India, have reached full capacity at their domestic plants and are unable to scale up for at least another year. Both suppliers have confirmed that expanding production requires new manufacturing lines, which are still under development.
The Regulatory Roadblock
The bottleneck began in April 2025 when aluminium cans were brought under the Bureau of Indian Standards (BIS) certification through a Quality Control Order (QCO). This regulation requires all cans, including imported ones, to be BIS-certified—a process that can take several months.
With foreign suppliers waiting on certification and domestic manufacturers unable to meet demand, beer makers are struggling to keep up with production schedules.
Industry’s Plea For Government Intervention
In a formal communication to the Department for Promotion of Industry and Internal Trade (DPIIT), the BAI has requested that the implementation of the QCO for imported aluminium cans be deferred until April 2026. This extension, it argues, would give domestic producers time to ramp up capacity while allowing short-term imports to continue.
The association also proposed that imports be permitted from international suppliers who have already submitted BIS applications, ensuring quality compliance without halting supply.
BAI Director General Vinod Giri stressed that unless immediate relief is provided, the ongoing shortage could have a cascading effect across the entire supply chain—impacting breweries, farmers, packaging units, logistics operators, and retail distributors.
Wider Economic Implications
India’s beer industry operates more than 55 breweries, with over ₹25,000 crore in investments and direct employment for about 27,000 people. The can shortage has already begun disrupting operations in several states, particularly during the festive demand surge.
Beyond the brewers, the packaging shortage threatens allied sectors like barley cultivation and logistics, potentially stalling the industry’s post-pandemic recovery.
The Road Ahead
Although the government has temporarily allowed aluminium can imports without BIS certification until September 2025, industry leaders believe this extension is too short to stabilize supply. Setting up new domestic capacity could take at least 12 months, leaving the market vulnerable to price pressures and reduced availability.
The shortage has brought the spotlight back to India’s evolving manufacturing and quality-control policies. While ensuring standards remains important, industry experts warn that rigid regulations without transition support could disrupt critical sectors like beverages and consumer goods.
Unless swift action is taken, the ongoing packaging shortage could leave not just beer lovers, but also state excise departments, running dry.
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