Irish whiskey set to make lucrative India breakthrough

IRISH whiskey could soon gains access to India, the world’s largest whiskey market.

The news follows a meeting between Taoiseach Bertie Ahern and Enterprise Minister Micheál Martin with Indian Prime Minister Manmohan Singh yesterday.

Import tariffs of up to 500% have kept foreign spirit-makers out of the lucrative Indian market.

But India is coming under massive pressure from the EU, US and now Ireland to reduce tariffs.

Indian drinkers consume 112 million cases of whiskey a year, with just 1% of this coming from outside India. Ireland produces close to five million cases a year and six million cases of Baileys Cream Liqueur.

The Taoiseach is in India leading a week-long trade mission of more than 80 companies, accompanied by Mr Martin, Education Minister Mary Hanafin and Arts, Sport and Tourism Minister John O’Donoghue.

In New Delhi yesterday The Economic Times reported the Indian government may consider scrapping the huge tariffs.

The move comes following lobbying from Pernod Ricard, owners of Irish Distillers, C&C, the makers of Tullamore Dew and Diageo, Bushmills owners.

Diageo Ireland corporate relations director Michael Patten said gaining access to the Indian market, even at reduced tariffs of around 74%, would be a major boost to Irish producers.

“India is not World Trade Organisation-compliant on this issue and EU Trade Commissioner Peter Mandelson is here next week pursuing a Trade Barrie Regulation Complaint.

“The story in the Economic Times is very heartening but we have to keep pushing until we get fair treatment,” he said.

Meanwhile, Irish food exporters sell just €1 million of produce to India, which is on course to become the world’s most populated country.

Bord Bia have brought representatives from the Irish dairy, ingredients and drinks companies to India to exploit opportunities to sell to India’s €1.1 billion people. They are participating at the International Food and Wine Show in New Delhi.

Bord Bia chief executive Aidan Cotter said: “India presents trade potential for Irish drinks companies as well as for high-value ingredients, particularly dairy ingredients.”

A series of one-to-one meetings have been organised by Bord Bia in Bangalore, Delhi and Mumbai between potential Indian buyers, government officials and key decision-makers from Indian food and drink sectors.

Bord Bia envisages a doubling Irish food and drink exports to the region in the five years to 2009.