India Probes Bulk Scotch Imports, the SWA Challenges England's Single Malt Rules, and Scotch Makers Call for a Duty Cut Before the Budget
Today's whisky news is about rules and money. India's tax authorities are looking at how bulk Scotch is imported under the new UK trade deal, the Scotch Whisky Association has challenged the new English whisky rules, and the industry is making its case for lower spirits duty ahead of the 28 October Budget.
India's tax authorities investigate bulk Scotch imports
Reuters reported on 19 October that Indian tax officials are investigating whether Pernod Ricard and Diageo classified some bulk Scotch whisky imports correctly under the India-UK trade agreement. The pact came into effect on 15 July and cut India's tariff on certain Scotch imports from 150% to 75%, with a planned fall to 40% over the next 10 years.
According to the report, tax inspectors argue the reduced duty does not apply to bulk Scotch concentrates. Both companies import bulk Scotch that is blended into Indian brands such as Royal Stag, Blenders Pride and McDowell's. Diageo's Indian unit, United Spirits, disclosed in a stock exchange filing that its offices were searched as part of an industry-wide exercise. Pernod Ricard and Diageo both say they are cooperating with the authorities.
The lower tariff has already changed shelf prices. Diageo and Pernod Ricard cut prices by around 10 to 15% on selected products in Maharashtra, Rajasthan, Goa and Uttar Pradesh, including Johnnie Walker Black Label, J&B, Chivas, Ballantine's and The Glenlivet. Separately, William Grant & Sons India's managing director Kartik Mohindra told Storyboard18 that demand is growing fastest for older Scotch, particularly 15 and 18 year old expressions, and that the trade deal could widen access and increase competition.
Scotch Whisky Association challenges England's new whisky rules
The Scotch Whisky Association has challenged England's newly approved geographical indication for English whisky. The UK Department for Environment, Food and Rural Affairs approved it in September 2026, following an application started by the English Whisky Guild in February 2022.
The disagreement centres on the definition of single malt. According to Aabkari Times, critics say the English specification lets whisky qualify as single malt when distillation takes place at one distillery, even if other production stages happen elsewhere. The SWA says that departs from what consumers expect from the term. It has raised its concerns alongside the Irish Whiskey Association and the Welsh Whisky Association.
The English Whisky Guild says the indication gives the category a clear identity. Its specification requires UK-grown cereals and locally sourced water, and allows maturation in different types of wood. After industry feedback, DEFRA also widened the permitted distillation methods to include hybrid pot-column stills. England now has more than 70 active and planned whisky distilleries.
Scotch industry asks for lower spirits duty before the Budget
The SWA is urging the UK government to cut spirits excise duty in the 28 October Budget. It says duty has risen 17% over three years, yet HM Treasury collected £4.059 billion in spirits duty in 2025/26, which is £94 million less than the year before.
The association's figures put duty on spirits at £33.99 per litre of pure alcohol, against £30.62 for wine, £19.45 for draught beer and £10.39 for cider. It says a 40% ABV Scotch pays about 1.7 times the duty per litre of alcohol paid by draught beer. It also says spirits make up 38% of alcohol profits in UK bars, pubs and restaurants but only 18% of units sold.
For context, the SWA says Scotch exports were worth £5.4 billion in 2025, the UK's largest food and drink export, and that the industry adds £7.1 billion a year to the UK economy and supports more than 65,000 jobs.
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