Imported liquor could be on the list
India has ordered its 4,000 military shops to stop buying imported good, according to a document reviewed by Reuters, a move that could send an unwelcome signal to foreign liquor firms such as Diageo and Pernod Ricard.
India’s defense canteens sell liquor, electronics and other goods at discounted prices to soldiers, ex servicemen and their families. With annual sales of over $2 billion, they make up one of the largest retail chains in India. While imported liquor sales at defense stores generate only about $17 million in annual sales.
The October 19 internal order from the defense ministry, reviewed by Reuters, said that in future, “procurement of direct imported items shall not to undertaken.” The order said the issue had been discussed with the army, air force and navy in May and July, and was aimed at supporting Prime Minister Narendra Modi’s Atmanirbhar Bharat campaign to promote domestic goods.
“We have received the order and are working out the formalities, it will take some time to implement,” a senior defense ministry spokesman commented. The order did not specify which products would be targeted. However, industry sources said they believed imported liquor could be on the list.
Out of the 5,500 items sold by the CSD, around 420 are imported, imports make up around 6-7% of total sales value in the defense shops, according to the Manohar Parrikar Institute for Defense Studies and Analyses. Among all the countries, China accounts for a bulk of the imported items such as toilet brushes, electric kettles, sandwich toasters, laptops and ladies handbags.
The Brief. Sign up to receive the top stories you need to know right now.