The forthcoming Indian budget is expected to contain welcome relief to the heavily taxed market for international liquor in the country.

According to local press reports, the government's revenue department and food-processing ministry are pushing for a duty rationalisation on beer, wine and spirits that would see a reduction of India's duty on imported alcohol, which ranges from 246% to 706%.

The food-processing ministry is also pushing for a separate policy to widen the domestic market and explore the international possibilities for exports of Indian products.

Apparently the food processing industry is suggesting that a working group be set up to investigate the correct levels of countervailing duty, which would be conducive to imports without affecting domestic interests.