Middle East Crisis increases Alcobev Input Costs in India

With the ongoing conflict in the Middle East severely disrupting global supply chains, two of India’s leading industry bodies, the Confederation of Indian Alcoholic Beverage Companies (CIABC) and the Brewers Association of India (BAI), have approached state governments seeking urgent price revisions and relief measures to offset unprecedented input cost escalation. The conflict has choked critical maritime trade routes, particularly around the Strait of Hormuz, a key artery for global oil and petrochemical shipments. With nearly 20% of the world’s crude flows passing through this corridor, disruptions have triggered a sharp spike in energy prices, freight costs, and availability of essential raw materials. Shipping routes have become longer and costlier due to diversions, while war-related surcharges and insurance premiums have further strained supply chains. The cascading effect has been felt across industries reliant on imported inputs and energy-intensive manufacturing,

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