Why India's beer industry seeks relaxation in quality control rules
What's the story
The Indian beer industry has been hit hard by a severe shortage of aluminum cans, which could affect its growth. The Brewers Association of India (BAI) has requested the Indian government to relax quality control norms on a temporary basis. This is to ensure an uninterrupted supply from abroad and mitigate the impact of this shortfall on their operations and revenue generation.
Supply shortage
Shortage of cans
The Indian beer industry is currently facing an annual shortage of 12-13 crore units of 500ml cans. This accounts for nearly 20% of the country's total beer sales. The shortfall could also lead to a revenue loss of about ₹1,300 crore for the government, as per BAI. The situation has been exacerbated by a quality control order (QCO) mandating BIS (Bureau of Indian Standards) certification for aluminum cans since April 1, 2025.
Capacity constraints
Manufacturers have exhausted domestic production capacity
Leading aluminum can manufacturers, BALL Beverage Packaging India and Can-Pack India, have exhausted their domestic production capacity. They have said that they won't be able to ramp up supply for at least six to 12 months due to the need for new production lines. This has further complicated the situation for the beer industry, which can't import cans from foreign vendors due to potential delays in BIS certification.
Regulatory appeal
BAI has sought a 1-year relaxation in QCO norms
The BAI, which represents three major beer manufacturers, AB InBev, Carlsberg, and United Breweries, has sought a one-year relaxation in QCO norms from the government. This request was made through a letter to the Department for Promotion of Industry and Internal Trade. The association has also asked for an extension until April 1, 2026, for implementing the QCO mandating BIS certification for imported aluminum cans.