Quality Control Order: India’s beer industry is currently facing a unique crisis. Even in October, the heat has led to strong demand for beer, but a shortage of aluminium cans has prevented the beer supply. It’s estimated that the can shortage will impact annual supplies of 120-130 million units. This will also impact government revenue.
New Delhi: This year, the weather has shown a strange form. In many places during Dussehra, Ravana died not by burning but by melting because there was heavy rain on the evening of Dussehra. Even after this, the mood of the weather is changing rapidly. Half of the month of October has passed, but we have not yet got relief from the fan. In such scorching heat, people also look for beer to quench their thirst. But India’s domestic beer industry is facing a severe shortage of aluminium cans. The reason for this is the government order.
What has happened in development
According to Vinod Giri, Director General of the Brewers Association of India (BAI), through the Quality Control Order (QCO), the government has brought aluminium cans under the scope of BIS certification. This decision came into effect on April 1, 2025. This order has created short-term supply problems for the beer and other beverage packaging industries in the country. It is noteworthy that 85 percent of the beer sold in India is canned beer, while bottled beer accounts for only 15 per cent.
Can makers raised their hands?
Ball Beverage Packaging India and Can-Pack India, the country’s leading suppliers of aluminium cans, have already reached maximum domestic capacity at their manufacturing facilities in India. These companies say they will not be able to increase supplies for at least 6-12 months until new production lines are added. Previously, cans were supplied by foreign suppliers.
There is a problem with imports
Due to the issuance of the QCO, the Indian beer industry cannot import beer cans from foreign vendors. Imports are permitted only if the foreign supplier obtains BIS certification from the Bureau of Indian Standards. Industry experts say obtaining BIS certification takes months. The BAI has requested the government to relax the QCO standards.
The government may also suffer losses
The industry believes that if this supply shortage is not addressed, it will not only impact the availability of beer but also negatively impact government revenue. It is estimated that the beer can shortage will impact the sale of 120-130 million cans annually, potentially resulting in a revenue loss of approximately ₹1,300 crore for the government. Therefore, the BAI has requested the government to address this issue immediately and provide a short-term solution. Regulatory relaxations could help streamline the supply of imported cans, allowing the domestic beer industry to maintain its growth momentum.
Asking for a short-term discount
The BAI is seeking a “short-term regulatory exemption” from the government. This is intended to alleviate supply constraints during this transitional period. This exemption could allow imported cans to enter the market without any additional barriers. It will be important to see how the government responds to this matter and whether it takes any steps to address the beer industry’s concerns. Resolving this issue is crucial not only for the beer industry but also for the broader economy.
