India Seeks Reciprocal Market Access for Alcoholic Beverages in FTAs

New Delhi, Dec 21 (PTI) India looks for greater market access on a reciprocal basis for its alcoholic beverages while negotiating free trade agreements (FTAs), a senior government official said on Thursday.

Additional Secretary in the Commerce Ministry, Rajesh Agrawal, said that demand for Indian spirits is growing in the world.

"On the market access point of view, it is on a reciprocal basis. If we are opening up our market in any way...we also try to look for market access in other countries," he told reporters here.

The remarks assume significance as India is negotiating a free trade agreement with the UK and the European Union (EU). Cutting customs duties in the sector is one of the key demands of these countries.

"This is one of the areas (where) we are trying to negotiate upon and...we are trying to see that the duty concessions that are required in various destinations, we get (that)," he said.

He added that the condition that for a product to qualify as a whisky, it must be matured for a period not less than three years has not yet been resolved.

The definition of what classifies as "Scotch" whiskey remains a sticky point.

The Indian industry claims that because of the warm climate in India, the product matures in one year and gives the same outcome.

"The debate is still on whether we should brand it as Indian whiskey or look for a Scotch (brand)...International law in many countries prohibits that (one-year thing). It is an unresolved issue," he added.

According to the alcoholic beverages makers' body Confederation of Indian Alcoholic Beverage Companies (CIABC), it has been highlighted several times, along with scientific substantiations, that such long maturation is not applicable under a warm Indian climate.