In India, beer lovers may feel a pinch of price hikes. This is because the ongoing war between Russia and Ukraine could pose an impact on the price and supplies of barley, an important ingredient in alcoholic beverages. The Russia-Ukraine conflict has already caused vodka to pay the price as several states in the US and Canada have boycotted Russian-made and Russian-branded spirits.
Russia- Ukraine, and Barley:
Russia ranks as the world’s second-largest producer of barley, but Ukraine ranks as the fourth-largest producer of malt. As a result of further escalating the crisis, global barley prices may spike.
India makes Barley:
Many breweries in India depend only on domestic barley production to make their beer. The domestic prices of barley, however, are affected by global prices.
Beer could get costly:
According to the CNBCTV18 report, procurement costs will increase if global barley supplies decline and domestic prices move in tandem with international prices. If this happens, you may have to pay more for your favorite beer.
Beer Companies & Government:
Ankur Jain, chief executive of beer brand Bira 91, told the Economic Times the ongoing Russia-Ukraine crisis will impact global barley prices, which have already risen. Jain stated that this will only be a short- to medium-term impact. Jain, however, said it would depend on the companies whether they raise prices immediately and also on the state governments which have a decisive role in determining alcohol prices.