India’s domestic beer industry is facing a severe shortage of aluminium cans, prompting the Brewers Association of India (BAI) to seek a “short-term regulatory relaxation” in quality control norms to prevent disruption in supply.The industry is grappling with an annual deficit of 12–13 crore units of 500 ml cans, which account for nearly 20% of total beer sales in the country, PTI reported.According to Brewers Association of India (BAI), the shortage could also result in a revenue loss of around Rs 1,300 crore for the government.Aluminium cans were brought under mandatory BIS (Bureau of Indian Standards) certification starting April 1, 2025, through a quality control order (QCO).While aimed at ensuring product quality, the move has created short-term supply challenges for the beer and other beverage packaging industries.Key domestic suppliers, including BALL Beverage Packaging India and Can-Pack India, have already exhausted their production capacity. They have informed that they will be unable to ramp up supply for at least another 6–12 months until new production lines come online. Meanwhile, the QCO has also delayed imports, as BIS certification for foreign cans can take several months, raising the risk of further disruptions.BAI, which represents three major beer producers, AB InBev, Carlsberg, and United Breweries, accounting for 85% of beer sold in India, has approached the government requesting that the “implementation of QCO mandating BIS certification for imported aluminium cans is deferred to 1st April 2026 to provide sufficient time for domestic suppliers to build local manufacturing capacity”.The association also urged the government “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”.United Breweries Ltd (UBL) Managing Director and CEO recently flagged the issue, noting that the challenge for the industry is supplies, “more than the inflation, especially on the packaging material, because we have a can shortage in India.”According to BAI, the beer sector operates over 55 breweries in India, employs more than 27,000 people, and has invested around Rs 25,000 crore. It also supports farmers and ancillary units, contributing significantly to the broader economy.“However, this expansion is expected to take at least 12 months, and the recently granted one-month extension, although welcome, is not sufficient to build local capacity NOR import cans from other countries to meet the shortfall,”BAI said.“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 INR 1,200 – 1,300 crores annually,” it added.With demand continuing to outpace supply, the beer industry is calling for immediate regulatory flexibility to avoid a larger disruption in production and sales, while allowing domestic capacity to catch up over the coming year.“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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