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Pakistan eyes the India beer market

NEW DELHI - Diplomatic ties between India and Pakistan are improving slowly, but what would Pakistan like to export to India if relations between them normalize? Murree beer, say some. Murree beer is produced in Rawalpindi and is a relic of the British Raj. The brewery was established in 1861 and few Indians, and not many Pakistanis, have tasted the beer because the law in Pakistan allows only the country's non-Muslim minority to buy alcohol.

The prospect of exporting beer to India was raised by a member of a Pakistani delegation that visited India in May. M P Bhandara, a member of the delegation of legislators and managing director of Murree Brewery Company Ltd, said that he would like to export significant quantities of Murree beer to India, as it is a vast market.

It is not clear whether Pakistan has ever exported beer to India, although India does import beer from several countries, and some of the large international beer companies have set up shop. Hopes of exporting Murree beer must gladden the heart of Bhandara, a non-Muslim Parsee. He said that consumption in Pakistan is very low and his company makes as much beer in Pakistan in one year as an average-sized brewery in Germany makes in three days.

The Murree Brewery, a listed company, makes four different brands of beer, using Australian barley. But production has dropped to 160,000 cases a year, from 350,000 cases a decade ago. The Indian market for beer is estimated at nearly 70 million cases a year and it is rising by 15-20 percent annually. United Brewery, which makes Kingfisher beer, is the market leader with nearly 30 million cases a year. Shaw Wallace and Company is next with 25 million cases.

"Murree is a very well-known brewery and there will be many takers for its beer in India, at least for the sake of nostalgia," said Kapil Channa, president of corporate affairs at Shaw Wallace. He said people who moved to India after partition of the subcontinent in 1947 would certainly like to revive old memories.

Although there are no records to suggest that Murree beer has ever been imported into post-partition India, Indian alcoholic beverages are popular in Pakistan. There are no official exports of alcoholic beverages to Pakistan and consignments are smuggled from India to Pakistan through the Sind border.

Diplomatic ties between India and Pakistan have been improving steadily with Pakistan recently removing a ban on the import of 78 items from India. The two countries have also named new ambassadors to each other's capitals. India and Pakistan have official annual trade of around US$200 million, but exports through third countries, mainly Dubai and Singapore, total nearly $1 billion. Officials believe trade could rise to nearly $3-4 billion if the two countries start trading with each other directly.

Relations between the two began improving a few weeks ago and India has suggested the exchange of official and trade delegations to prepare the ground for talks, including talks on Kashmir, the most contentious issue between.

India plans to send at least two full trade delegations to Pakistan, and Islamabad sent a 40-strong delegation to India in late June. An increase in trade would also play a role in promoting friendly ties, said senator Ilyas Ahmed Bilour of Pakistan, who is co-president of the India-Pakistan Chamber of Commerce and Industry.

(Asia Pulse)
 
Jul 1, 2003


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