India, Australia explore easing whiskey exports

livemint.com:

NEW DELHI : A newly formed India-Australia joint working group is looking at the possibility of a mutual recognition agreement (MRA) that would help Indian whiskey makers tap into the Australian market, which has a significant Indian population and growth opportunity, two people aware of the development said. India and Australia are working together on a solution for the smoother entry of Indian whiskey to the Australian market, two people aware of the development said. A newly formed India-Australia joint working group is considering the possibility of a mutual recognition agreement (MRA) in this respect.

Under Australia’s rules, the spirit must be matured for two years before it can be labelled whiskey, a disadvantage for potential liquor exporters from India, which has no such rule. Indian companies claim that spirits mature quicker in India due to its warmer climate, and the maturation rule limits access in a market which has a significant Indian population offering good growth opportunities. They claim that a two-year maturation in India will also cause a 10% loss due to evaporation.

“There is a difference in maturation rate for whiskey that both countries follow, and that is an obstacle in trade. A joint working group has been formed to look into the issue and find a way out. Several stakeholders are part of the committee, including the ministry of food processing industries that is looking into the matter," one of the two people said, requesting anonymity.