Mumbai, March 27: The ongoing US-Iran war is beginning to impact everyday goods in India, with the beer industry warning of potential price hikes and supply disruptions. The conflict, now in its 30th day, threatens production as essential inputs such as industrial gas, glass, and aluminium face shortages.

India, heavily reliant on Gulf-linked energy and shipping routes, is particularly vulnerable. Nearly 90% of the country’s crude oil imports pass through the Strait of Hormuz, a narrow maritime chokepoint at the centre of hostilities. LPG imports from countries like Qatar and Saudi Arabia are also affected, compounding the supply strain. LPG Booking Rule Change? Government Calls Reports ‘Misleading’, Says No Changes in Refill Norms.

Why Beer Costs Could Rise

The Brewers Association of India, representing firms including Heineken, Anheuser-Busch InBev, and Carlsberg, has flagged a surge in production costs. Glass bottle prices have risen around 20%, driven by gas shortages essential for keeping furnaces operational.

Attacks on Gulf energy facilities have disrupted industrial gas exports, forcing some glass manufacturers to partially or fully halt production. Aluminium and other packaging inputs, such as cartons, labels, and tape, are also in short supply due to shipping and logistics disruptions. ‘Hormuz Route Opened for India’: FM Abbas Araghchi Announces Safe Passage for ‘Friendly Nations’ Including China, Russia.

Timing Hits Peak Summer Demand

The potential price increases come at a sensitive time, as India enters peak summer, a period of high beer consumption. Vinod Giri, Director General of the Brewers Association of India, stated, “We are asking for price increases in the range of 12-15 per cent. Rising production costs are making some operations unsustainable.”

The conflict’s impact is not limited to alcohol. Disruptions in gas, oil, and shipping threaten other sectors including plastics, cosmetics, processed foods, and consumer packaging. With India’s liquor market valued at nearly USD 7.8 billion in 2024, prolonged supply issues could translate to higher retail prices and reduced availability across cities.

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(The above story first appeared on LatestLY on Mar 27, 2026 08:17 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).