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The bridge between a missile attack in the Middle East and a glass of beer in Mumbai has never been shorter
Is war coming between Iran and Israel over your beer? India's major brewers brace for price hikes and shortages this summer
The war in the Middle East has gone from the headlines to your Happy Hour. While the geopolitical conflict between Iran and Israel may seem far away, it is currently creating a crisis for the Indian beer industry that could leave your favorite pint glass empty or significantly more expensive.
As India heads into the scorching summer of 2026, the peak season for cold lagers, a perfect storm of gas shortages and supply chain collapses is hitting the beverage industry.
According to a detailed report by Reuters, the conflict has hit India at its most vulnerable point: its dependence on imported energy. As the world's fourth-largest importer of natural gas, India sources almost 40% of its supply from Qatar. With Iranian attacks partially disrupting Qatar's export routes, the gas needed to power the glass factories' huge furnaces has been reduced to a minimum.
This had caused the very containers that contain beer to become a luxury item.
The cost of packaging
The Indian Brewers Association, which represents titans like Heineken, AB InBev and Carlsberg, has come up with a sobering update. War not only makes beer more difficult to transport; is making packaging difficult as glass bottle prices have risen. With shipping delays in the Middle East crippling the import of raw aluminum, it means that even “canned” beer is not a safe alternative to glass.
“The situation is serious,” a regional beverage executive told Reuters, noting that inventory of essential materials is quickly depleting.
The summer crisis: Will prices rise?
As global giants like Heineken and Carlsberg struggle, India's beloved craft beer brands are also feeling the pressure. Ishwaraj Bhatia, co-founder of Simba Craft Beer, confirms to News18 that the industry is bracing for a significant hit to its raw materials.
“In light of the current LPG supply constraints in India, we are closely monitoring the potential impact on glass manufacturing and overall input costs,” says Bhatia. “A nearly 35% reduction in LPG supply is expected to put upward pressure on glass prices, with an estimated increase of Rs 3-5 per kg.”
The industry is currently in a standoff with state regulators. Because alcohol is strictly controlled in India, brewers can't just change the price on a whim; They need government approval in two-thirds of India's 28 states.
Vinod Giri, director general of the Indian Brewers Association, told Reuters they are seeking price increases in the range of 12% to 15%. If states refuse to allow these increases, brewers may have no choice but to stop supply entirely as current production costs have become “unsustainable.” Bhatia adds that they have not seen an immediate impact on their supply chain. “However, sustained limitations could lead to greater availability of glass containers in the near term,” he says.
It also says that while Simba is currently working to ensure continuity, “Our priority remains to absorb as much of this cost pressure as possible without passing it on to consumers. That said, if input costs continue to increase significantly or if supply challenges intensify, a calibrated price adjustment may be considered.”
March 25, 2026, 20:27 IST
