States need to GI-tag food, beverages for better prices overseas: alcobev industry

States need to GI-tag food, beverages for better prices overseas: alcobev industry

Kolkata, Nov 22 ( PTI) The Indian alcoholic beverage sector on Wednesday laid stress on GI-tagging approach for food and beverage products by states, as this will help in achieving better price realisation in overseas markets.

The alcobev industry is poised to grow by around six per cent CAGR (compound annual growth rate) to reach USD 63 billion in the next five years from the current size of USD 51.7 billion, International Spirits and Wines Association of India Chief Executive Officer Nita Kapoor said.

She was talking to PTI on the sidelines of a session on 'Agriculture and Allied Including Blue Economy' at the Bengal Global Business Summit (BGBS).

She also called for 'collaborations with large fruit-growing countries Europe and erstwhile USSR countries' to boost the fruit-based low alcohol content products in the alcobev sector.

'The GI tagging is important as it provides a distinct advantage. For example, Scotch, Champagne and Cognac are a few successful GI tag categories. The key strategic issue is to consider some number of GI-tagged products in the export basket for the state of West Bengal,' Kapoor said.

Europe has more than 5000 GI-tagged products, while India has less than 500 effective GI tags, she said.

'GI tag requires a complete ecosystem that a state needs to develop. A private entity or a corporate can work within this ecosystem. It has to come from the state. We are talking to state governments for GI-tagging of products, including beverages, fruits and grains used as the raw material for the industry.

'More GI tagging of products will help get better prices in export markets,' Kapoor said.

The total export of the alcobev industry is currently at Rs 1500-1600 crore, she said.

The alcobev sector accounts for two per cent of India’s nominal GDP and generates employment for 7-8 million people, including six lakh farmers producing grains and sugarcane required as raw material for the industry.

Globally, India is the fifth in the world in terms of alcobev industry but in spirit, the country is second globally.

For extra neutral alcohol (ENA), the base to manufacture spirits, the top three states are UP, Maharashtra and Karnataka.

'West Bengal, Telangana and Rajasthan contribute roughly 3-4 per cent of supplies of grain-based ENA. There is an opportunity to seriously consider ENA distilleries in Bengal,' she added. PTI BDC/RBT NN

Disclaimer: This story is auto-generated feed.

Related Stories

No stories found.
PSU Watch