How Scottish Independence Could Affect Scotch Prices

first_imgOn 18 September, Scottish voters will poll to decide their future. A simple aye/nay from them would answer the pertinent question: Should Scotland be a new independent state? If Scotland decides not to remain part of the United Kingdom in Thursday’s referendum, the price of Scotch whisky imported to India may shoot up. Whiskey lovers in India might have to shell out extra money to purchase Scottish Whiskey.At present, Scotland uses United Kingdom’s pound sterling to access its overseas deals, gets tax-free export with European Union and uses its bloc to deal with other nations.If Scotland succeeds in winning the elections against United Kingdom, their whiskey exports to India would likely add up the price of single malt.According to latest figures, India imported Scotch whisky worth £69 million in 2013 with 150% import tariff. India is the fourth-largest market for Scotch whisky by volume and 14th by value, so the Scotch Whisky Association has tagged India as a ‘star export performer’.A report by Scotch Whisky Association said that if Scotland votes for independence, its EU membership is not guaranteed. “Even a temporary interruption of EU membership involving exclusion from the single market or the customs union, if this were a consequence of independence, would be damaging and difficult to manage,” Hindustan Times quoted David Frost, chief executive of SWA.Frost added that Scotland could lose the use of pound sterling too. Ultimately, the detachment of Great Britain will have serious implication on exports, supply chains, pricing and competitiveness in Scotch whisky industry.Scotch whisky is exported to around 200 markets, following the poll, the taxation tariffs and detachment would increase costs to business, Frost added.If Scotland wins, both parts of Great Britain would be officially declared as independent nations on 21 March, 2016.last_img

Leave a Reply

Your email address will not be published. Required fields are marked *