The domestic beer industry, reeling under acute shortage of aluminum cans, has urged the government to allow it to import cans to ensure uninterrupted supply.
The country’s Brewers Association of India (BAI) – representing leading beer makers, AB InBev, Carlsberg, and United Breweries – has approached the government seeking a relaxation in quality control order (QCO) for a year to make up for short-term supply problems for beer as well as other beverage packaging industry in India.
Aluminium cans were brought under the ambit of mandatory BIS (Bureau of Indian Standards) certification by the government from April 1, 2025, through a QCO. This prevents the beer industry from importing cans from foreign vendors as the BIS certification takes several months.
BAI claims the industry is facing an annual deficit of 12-13 crore units of 500 ml cans, which account for almost 20 per cent of total beer sales in the country. This may lead to a shortfall of around ₹1,300 crore in government revenues, the association said, which accounts for 85 per cent of beer sold in India.
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However, key aluminium can suppliers including BALL Beverage Packaging India and Can-Pack India have already exhausted their domestic capacity at their manufacturing units in India and conveyed that they will be unable to increase supply for at least another 6-12 months, until new production lines are added.
The association has now asked for an extension until April 1, 2026. In a letter to the Department for Promotion of Industry and Internal Trade, BAI has requested the “implementation of QCO mandating BIS certification for imported aluminium cans is deferred to April 1, 2026 to provide sufficient time for domestic suppliers to build local manufacturing capacity”.
Although the government had granted an extension for importing aluminium cans without BIS certification till September 30, 2025, BAI says this is not sufficient to be able to import cans in to the country.
It has also requested “to allow import of cans without BIS certification by international suppliers who have submitted their BIS certification application along with required documentation until the time their applications are processed”.
This transitional arrangement will avoid business disruption while upholding regulatory oversight, said BAI Director General, Vinod Giri in the letter.
According to BAI, the beer industry operates over 55 breweries in which it has invested around ₹25,000 crore. It employs over 27,000 people, and creates an economic impact through farmers and ancillary units.
The Managing Director and CEO of United Breweries Ltd (UBL) also flagged this issue recently, saying the shortage poses significant threat to government revenues too. The challenge, he said, is bigger than inflation.
“The ongoing shortage of aluminium cans is not only a supply chain challenge for brewers, but also poses a significant threat to government revenues, especially state excise. We estimate that the combined loss to central and state governments could range between ₹1,200 - 1,300 crores annually,” the letter states.
This includes loss of excise and VAT revenue at the state level and GST contributions at the central level.
“In addition, this shortage also has a broader economic impact with operational impacts across allied industries such as agriculture, packaging, logistics, and retail,” said BAI.
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