DDL Chairman urges CARICOM to press India on high tariffs for regional spirits

Chief Executive Officer (CEO) of Demerara Distillers Limited (DDL), Komal Samaroo, has made a call for regional Governments to engage the Indian Government in negotiations to seek a reduction in tariffs on alcoholic spirits from CARICOM member states, which currently stand at around 200 per cent. The call comes as India has moved to cut tariff rates on alcoholic beverages from the European Union (EU) and Britain as part of newly negotiated trade agreements.

The CEO on Wednesday made the call during a panel discussion at a forum in Guyana titled “Perspectives on Global Trade: Challenges and Opportunities”, hosted by the World Trade Centre Georgetown (WTCG). The forum examined strategies for navigating the current global geopolitical and business environment, which has seen a shift away from World Trade Organisation (WTO) rules-based trade toward what was described as an unpredictable system of rising and falling tariffs.

According to WTCG Executive Director Wesley Kirton, the global trading system has evolved into “a crazy system of rising tariffs, then reductions and then raised tariffs again, all within a few weeks, based on actions and reactions on the part of major powers – really unpredictable and unprecedented.” Addressing the forum, Samaroo noted that Caribbean Governments maintain strong diplomatic relations with India and should leverage those ties to seek improved market access for regional spirits.

“Our governments have very good relations with India, which is slashing tariffs on alcoholic spirits from the European Union and Britain by half to 75 per cent—from 150 per cent to 40 per cent, and eventually to 20 per cent,” Samaroo said.

“Our governments should be seeking to have tariffs on our spirits lowered. We have some of the best-quality rum in the world, and with lower tariffs, we can be competitive.” Samaroo made the remarks in the presence of senior officials from the CARICOM Secretariat, including Deputy Secretary-General Dr Armstrong Alexis and Assistant Secretary-General for the CARICOM Single Market and Trade, Ambassador Wayne McCook. He urged CARICOM to place the issue on the agenda of its bilateral trade negotiations with India.

A former chairman of the Barbados-based West Indies Rum and Spirits Producers Association (WIRSPA), Samaroo said Guyana’s El Dorado brand has the potential to competitively enter specific segments of the Indian spirits’ market. India is currently the largest export market for Scotch whisky by volume, with more than 192 million bottles exported to the country in 2024, according to published statistics.

The data also indicate that Scotch whisky exports to India have increased by more than 200 per cent over the past decade. According to Samaroo, these figures underscore the significant opportunity for El Dorado and other Caribbean rums to penetrate and grow within the Indian market, provided tariff barriers are reduced.