BENGALURU: Cheaper Scotch is putting Indian whisky makers under pressure, even as lower import duties offer savings to companies that use it in their blends. For small distillers that make their own spirits, an imported label can now cost substantially less than a locally made bottle.Huli’s rice malt whisky was launched in Karnataka at Rs 2,650 for 750ml. By comparison, J&B Rare was priced at Rs 1,375 at Bengaluru retailer Tonique in October, according to TOI’s earlier reporting. At these prices, J&B Rare cost Rs 1,275 less, or about half as much. Tonique said the price had fallen from Rs 2,835, attributing the reduction to local bottling.“The smaller players will not be able to survive,” said Huli Spirits founder Aruna Urs. Her Mysuru distillery makes spirits from locally sourced paddy and jaggery and does not import Scotch.Arun Kumar Parasa of Unistil Alcoblends said falling Scotch prices had adversely affected the Indian single malt industry. Lower duties on bulk Scotch imported by some small and medium distilleries would benefit them “very marginally”, he said.The distinction is between making spirits locally and buying imported whisky for bottling or blending. Bulk Scotch arrives in large containers and can be bottled here or used as an ingredient in Indian whisky.A lower import bill can help these manufacturers, while cheaper finished bottles intensify competition for other producers.Jason Holway, senior consultant at drinks research firm IWSR, expects the price gap to narrow further. “Depending on the state, cheaper blended Scotches are expected to become more attractively priced than they used to be and may not be much more expensive than domestic premium brands using Scotch as an ingredient.”India’s trade agreement with Britain cut Scotch import duties from 150% to 75%. Customs officials subsequently questioned whether certain bulk shipments qualified for the lower duty. On Nov 2, commerce secretary Rajesh Agrawal assured manufacturers that the duty benefits would be protected, with commerce and revenue officials to work on resolving the classification dispute.An industry executive, speaking on condition of anonymity, said Indian buyers were also negotiating better purchase prices from Scotland. The executive estimated that the duty reduction could lower retail prices by roughly 8-10%, depending on state taxes and companies’ pricing decisions. Distribution difficulties and advertising restrictions remained longstanding hurdles for small manufacturers, the executive added.IWSR’s figures also show the limits of India’s shift towards expensive whisky. Its premium-and-above category, defined as Rs 2,899.01 or more per 750ml bottle, accounted for less than 1% of whisky consumed by volume in 2025, Holway said.