Beer industry seeks 1-year relaxation in BIS norms amid acute aluminium can shortage

New Delhi: The domestic beer industry, facing a severe shortage of aluminium cans, has urged the government to grant a one-year relaxation in quality control norms to prevent disruption in supply and safeguard revenue.

According to the Brewers Association of India (BAI), the sector is staring at an annual deficit of 12–13 crore units of 500 ml cans—nearly 20 per cent of total beer sales—which could lead to a revenue loss of around Rs 1,300 crore to the Centre and states. The shortage follows the government’s decision to bring aluminium cans under mandatory BIS (Bureau of Indian Standards) certification from April 1, 2025, under a Quality Control Order (QCO).

The move has created immediate supply issues for beer and other beverage makers, as certification for foreign vendors can take several months. Domestic can manufacturers—BALL Beverage Packaging India and Can-Pack India—have already hit peak capacity and indicated that expanding production will take at least another 6–12 months.

BAI, which represents leading brewers AB InBev, Carlsberg, and United Breweries, accounting for 85 per cent of India’s beer sales, has written to the Department for Promotion of Industry and Internal Trade (DPIIT) seeking a deferral of the QCO’s implementation for imported cans to April 1, 2026.

The association said the extension would give domestic suppliers time to ramp up capacity while preventing supply disruption. The government has already allowed imports without BIS certification until September 30, 2025, but BAI argued that the window is insufficient to bridge the gap.

BAI has also requested permission to import cans from foreign suppliers who have already applied for BIS certification and submitted the necessary documents, until their applications are approved.

“This transitional arrangement will avoid business disruption while maintaining regulatory oversight,” said BAI Director General Vinod Giri.

The industry, comprising over 55 breweries with investments of Rs 25,000 crore and direct employment of 27,000 people, warned that continued shortages could hit not just brewers but also allied sectors such as agriculture, packaging, logistics, and retail.

“The ongoing shortage is not just a supply chain issue but also a risk to government revenues. We estimate losses of Rs 1,200–1,300 crore annually in excise, VAT, and GST collections,” BAI said. United Breweries’ Managing Director and CEO has also flagged the issue, saying inflationary pressures are secondary compared to the packaging material shortage.

BAI emphasized that domestic expansion of can production is already underway but will take at least a year to materialize. “The recently granted extension, though welcome, is insufficient to ensure uninterrupted supply,” it said.