Dr Komal Samaroo, Chief Executive Officer of Demerara Distillers Limited (DDL), has urged Caribbean governments to actively engage with India to reduce the steep import duties imposed on alcoholic spirits from CARICOM countries, estimated at 200 per cent. He argued that the region risks missing major commercial opportunities if these barriers remain in place.
It is important for Caricom countries, as well as their High Commissioners and Ambassadors in India, to begin discussions with the Indian authorities to reduce tariffs on many Caricom products, including Caribbean rum.
Our research in India indicates that many countries are already discussing with the Indian authorities the reduction of their product duties. Given the strong relationship between Guyana and India, the Guyanese government, through its High Commissioner, should initiate the discussion, as Eldorado Rum is already popular in India. However, the duties are very high.
Caricom Leaders must understand that India has a market of 1.45 billion people, the largest in the world, and they must take the initiative with the Indian authorities, as the European Union did in the recent mother of all deals with India. The President of the European Union, Ursula von der Leyen, and the President of the European Council, Antonio Costa, whose ancestors are of Indian origin from the state of Goa, said that they are joining a huge market of 1.45 billion Indians and, with the 28 European Union members, creating a 2 billion market that benefits both parties to this agreement.
Dr Samaroo appealed for a panel discussion at a forum in Guyana titled “Perspectives on Global Trade: Challenges and Opportunities,” organised by the World Trade Centre Georgetown (WTCG). The event examined how businesses and governments can respond to a rapidly changing global trade environment characterised by uncertainty and shifting tariff policies.
His comments come at a time when India has begun significantly lowering duties on alcoholic beverages imported from the European Union and the United Kingdom under newly concluded trade agreements. Dr Samaroo noted that this development presents a clear opportunity for CARICOM nations to seek similar concessions.
During the forum, WTCG Executive Director Wesley Kirton described the current international trading landscape as highly volatile, explaining that the traditional rules-based system under the World Trade Organisation has been replaced by abrupt tariff increases and reductions driven by the actions of major global powers. He characterised the situation as unpredictable and unlike anything seen before.
Against this backdrop, Dr Samaroo stressed that Caribbean nations enjoy long-standing, positive diplomatic relations with India, which should be strategically leveraged to improve access for regional products. He noted that India is sharply cutting duties on European and British spirits—from levels as high as 150 per cent to between 40 per cent and, eventually, 20 per cent—creating a competitive imbalance for Caribbean exporters.
According to the DDL CEO, similar reductions for CARICOM-produced spirits would enable the region’s rum industry to compete more effectively in the Indian market. He emphasised that Caribbean rums are globally recognised for their quality and craftsmanship, and that pricing, not product standards, remains the primary obstacle.
Dr Samaroo made his remarks in the presence of senior CARICOM officials, including Deputy Secretary-General Dr Armstrong Alexis and Ambassador Wayne McCook, Assistant Secretary-General for the CARICOM Single Market and Trade. He urged regional policymakers to raise the issue formally during bilateral trade engagements with India.
Drawing on his experience as a former chairman of the West Indies Rum and Spirits Producers Association (WIRSPA), Dr Samaroo highlighted the potential for Guyana’s El Dorado rum to gain a foothold in select segments of the Indian spirits market. He noted that India is currently the world’s largest destination for Scotch whisky exports by volume, with over 192 million bottles shipped there in 2024 alone.
Available data also show that Scotch whisky exports to India have grown by more than 200 per cent over the past ten years. Samaroo said this rapid growth demonstrates the scale of the opportunity and reinforces the case for reducing tariff barriers so that Caribbean rums, including El Dorado, can expand their presence and compete successfully in one of the world’s fastest-growing spirits markets.
Finally, the government of Guyana needs to take this important step to support Guyana’s local beverages. The Indian market is huge, with a population of 1.45 billion, larger than the USA’s 335 million and the combined populations of North and South America, including the Caribbean, which is 1.06 billion. India still has over 450 million more people than both continents and the Caribbean countries.