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Thursday, 26 August 2021

INDIAN AIR FORCE TO THE FORE AGAIN: OPERATION KABUL

SUPERB EVACUATION PROCESS FROM AFGHANISTAN:
BOUQUETS FOR THE IAF

THE TALE OF SHIRIN PATHARE, AGM SECURITY, AIR INDIA KABUL, EVACUEE

'When I stepped on Indian soil, I lay down on the ground and kissed my homeland.'

PRELUDE

For the last one week since 18 August, we are seeing the Indian Air Force planes bringing Indians out from Kabul, stranded in Afghanistan.  It sounds very easy to see people arriving in India and hear stories, but we should also understand how much hard work is done by the IAF and the diplomacy of the Indian government that is going into this task. 

We do not have any direct air-route to go to Afghanistan. The shortest route is through Pakistan, but, as always, Pakistan is a big hurdle in this.  That's why Indian planes have to take a longer route and go via Iran and one has pay heavy costs for flying over any country and using their Airport. Each sortie runs into lakhs of rupees.

For this, GoI first obtained approval from Iran for using its airspace for IAF aircraft.  Getting this approval was not such an easy task because no country allows its airspace to another country and that too for a military aircraft.  But the Indian government was successful in getting this permission from Iran at very steep charges. Even after obtaining this permission, there was another issue that Indian planes could not land directly at  Kabul Airport.  This is because India's relations with Taliban have never been good. Therefore, the Indian government could not rely on the Taliban enough to keep the IAF plane safe while parked there for a long time.  Moreover, in view of the chaos and huge crowds at Kabul Airport, it was not possible for Indian planes to remain there for long.  To solve this problem, the Government of India found another way.  For this, it made arrangements with the airport of Kazakhstan, Afghanistan’s neighbour on its north-east.  Once again Indian diplomacy was successful and the IAF got permission to use Kazakhstan airport, again involving huge costs.

GOI also had another problem at hand, of how to transport Indians to Kabul airport because after its capture by the Taliban fighters, they had set up numerous check posts & barricades at many places and they not only searched every person minutely but also harassed them on the way to  Kabul airport. It was not possible for Indians officials to gather evacuees at Kabul airport for long duration due to the chaos at Kabul airport.

Eventually the Indian authorities found a solution for this too.  They arranged a large garage near the Kabul airport, where they could assemble and house around 150-200 Indians at one time.

Now, Indians are first gathered in the garage everyday and this work of gathering Indians goes on day and night.  For this, the Indian officers themselves take their cars and reach the place where the Indians are staying and bring the evacuees along with them to the garage adjacent to the Kabul airport, while struggling & bearing the heckling of the Talibanis at the numerous check posts on the way.  When enough Indians have been gathered in the garage, the information is passed on to the Indian Air Force officers stationed in Kazakhstan and the US officials stationed at Kabul Airport.  It is noteworthy that the ATS control and security control of Kabul Airport is still in the hands of the US Army. After this, clearance is given by the US Army to land the IAF aircraft at Kabul; it flies from Kazakhstan to Kabul Airport. By the time IAF plane reaches Kabul, all the Indians from the garage reach inside the airport in the US Army vehicles. They are immediately taken into the IAF plane and within 15 minutes, the aircraft starts its journey back to India, again via Iran with the rescued Indians onboard.

The IAF has once again come to the rescue of stranded Indian people as well as those of numerous countries in an exemplary manner. It has shown the world why it is so highly rated. It is terrifying to think of what could have happened in Taliban controlled Afghanistan had they not evacuated people amidst extraordinary hostility. We salute them!

THE STORY

On August 15, when Kabul fell to the Taliban, Shirin Pathare was on the tarmac of the airport seeing off an Air India flight to India. Little did he know what was to follow. In his own words:

I reached Kabul for the first time in October 2020. It was chilly weather and I could see icy mountains. People were very nice and everything was so good for me because I was the security head for Air India's Kabul flights. It was a very important posting for me.

A month after my reaching Kabul the peace talks between the Afghan government, the Taliban, the US, Turkey and Qatar got derailed. Around that time news came in that all American forces will withdraw from Afghanistan from May 2021. There was not much violence in Afghanistan then except sporadic incidents. The only incident of violence I recall was when Pakistan Prime Minister Imran Khan came to Kabul in the last week of November. After he left, there were explosions in Kabul. I was traveling on a tricycle rickshaw at that time and saw rocket launchers being used openly. I saw 24 rockets launched in front of me. I could not believe the daring of the attackers.

By February the Indian embassy in Kabul issued a no-go alert to Indians living in Afghanistan -- asking us not to travel at night or travel to unsafe locations -- due to an increase in kidnapping incidents.

The Biden administration's announcement that the US forces would leave Afghanistan by August 31, 2021 aggravated the violence from the Taliban side. The violence started in March and it was brutal. In May, the Taliban surrounded Kandahar. They surrounded the city from all sides and cut off the supply routes by road. This led to food shortages, leading to the Afghan forces' surrender.

The Taliban followed this up in Kunduz and Mazar-e-Sharif. When they captured Mazar-e-Sharif we realised that Kabul would be next as it is only 425 km away. On Eid I saw rocket launchers being aimed at the location where President Ashraf Ghani was attending prayers.

On July 29, I lost my father in Mumbai. After the last rites, I went back to Kabul on August 12. When I arrived in Kabul, my friends asked why I had returned. I said it was my duty to come back. If I didn't return, who would operate the Air India flights in Kabul? On August 13 and 14, the Air India flights were full. On August 15, I called my wife and children and wished them Happy Independence Day.

At 11 am, a colleague came rushing in. He said the Taliban were only 11 km away from Kabul airport. I was leaving home and till this day I wonder why I did not take my passport with me to work that day. If I had taken it along, I would have been in India on August 15 itself.

On August 15, AI 244 -- the Air India flight from Kabul to New Delhi -- had a full load of 160 passengers. I realised only 35 passengers had checked in. Slowly, more passengers started coming in and soon there were 100 more passengers. One of my colleagues showed me a video on his phone. In the video, I could see the building where I stayed under attack. The Taliban had surrounded the building.

I knew I could not show my distress to the passengers. I am the security chief and I had to put up a brave front. I asked all my staff not to see videos on their mobiles. All mobiles were to be switch off. 31 passengers could not reach Kabul airport for the flight. I told the flight commander about the situation. He told me to leave Afghanistan without my passport. I said, 'No.'

He asked, 'Why not?' I told him I had seen Kaala Pathar in my childhood. In the movie there is a scene where Amitabh Bachchan, the captain of his ship, abandons it to reach safety. When he gets up the next morning, he sees the ship is intact. He is dismissed from service and lives all his life in guilt. I told the Air India captain that I do not want to live in guilt. I told him I don't want to be called a bhagoda (coward) all my life.

'Aagey aap ki marzi (as you wish),' the flight commander said. If there is a God, I responded, then he will save me.

Qatar Airways, Pakistan International Airlines, another small PIA plane were all on the tarmac, but were not taking off as they had not got the green light. Qatar Air was a full flight and was waiting for three hours on the tarmac with 300 passengers inside the plane. I wondered what was wrong, why were these flights not taking off? Luckily, by 4.30 pm, the Air India flight got the chance to take off from Kabul airport. And this was the last flight to take off that time.

I did not leave the airport till I saw the Air India flight up in the air over Kabul. Within minutes of the Air India flight taking off, Taliban fighters reached Kabul airport. Firing started. At 5 pm, the message came that nobody could leave the airport. Worse, our driver abandoned the car and fled. All our friends at the airport too disappeared within minutes.

Luckily, I met a protocol officer of the Indian embassy at the airport. He too was stuck in the melee. He called the embassy. We managed to arrange a bullet-proof car. I told the driver not to stop anywhere and drive to the Indian embassy which was only five km from the airport. When we reached the Green Zone, which is always heavily guarded as most embassies of the world are located in Kabul, it had no guards. There was no one. It was 6.30 pm. I decided to go back home in Kabul and pick up my passport. I wanted my passport because it had American, Canadian and UK visas. To get those visas again would be a big problem. I arranged for another car with the help of an Indian friend. He arranged for a car with three Afghan locals. One was from Jalalabad and Mazar-e-Sharif.

At 7.30 pm, I entered my building. The owner of the flat told me the Taliban would enter any moment and I would have to vacate immediately. He gave me 15 minutes time to pack up and leave. I left most of my luggage behind and exited. At that time, the coordination between my heart and mind had stopped functioning. I was numb. I could see Taliban on the streets. People were running on the roads with household supplies. I asked my driver what are they taking. The Afghans told me to keep shut and not open my mouth till we reached the Indian embassy.

I prayed to God, my mother and my kuldevi. My blood pressure started shooting up. Our car was stopped by the Taliban outside the Canadian embassy. There were 15 of them. They had guns and rocket launchers. It was 8.30 pm. I took my wife and children's photograph out of my pocket. I felt perhaps this would be the last time I would see them. I was not scared of the Taliban, I was more worried about the ISI. I felt what happened to Reuters photographer Danish Siddiqui could happen to me. The three Afghans whom my Indian friend had sent along with me were messengers of God for me.

They spoke to the Taliban and did some smooth talking. It was dark so the Taliban could not see our faces.Since it was dark the Taliban soldiers did not find out I was Indian. The car halted for 20 minutes and every second was a matter of life and death for all of us. I sat still. I thought each breath would be my last breath.

While talking to the Afghans, a Taliban fired in the air. I thought this is it, my life is over. The driver then got out and started speaking to the Taliban. Luckily, at that very moment, a top Taliban commander's convoy was approaching the area. All of a sudden, the Taliban uttered one word in Pashto, which I will remember all my life: 'Burro'. It means 'go away.' Without wasting a second, we left for the Indian embassy.

I ate dinner at the embassy and tried to sleep, but could not sleep. I didn't know at that time that one more huge hurdle was left for me before reaching India. On August 16, we stayed in the embassy. The Taliban created a hostage kind of situation where no one could enter the embassy and no one could leave the embassy. We thought we were going to be stuck in the embassy and there was no way we would leave Kabul until a new government was formed.

I called my family on August 16 and told them that I was alive and not to worry. There were roughly 150 Indians in the embassy on August 16. At 9.30 pm on August 16, the embassy got a message from the Taliban that they would let us travel to Kabul airport. By 10 pm, we got ready to leave. The Taliban looked at us as if we were specimens from another planet. Four vehicles with Taliban escorted us. One was a pilot vehicle, another vehicle was in between, the others were behind our convoy.

There were 20 Land Cruisers and 150 Indians had to fit in them. It is a 20 minute drive from the Indian embassy to Kabul airport, but it took us five hours to reach that night.It was the worst journey of my life. Every now and then, Afghans used to jump on our convoy and the Taliban escorting us started firing in the air to disperse the crowds. I have no idea whether they were good Taliban or bad Taliban, but they were very nice to us.

After 2 am, we reached Kabul airport. We entered through the Turkish gate and not through the normal gate where Afghans were gathered in huge numbers. They wanted to escape Kabul, but could not do so because the airport was closed. The Taliban escort handed us over to the Turkish soldiers guarding the Kabul airport. The Turks screened us and handed us over to the Americans. The Americans again screened us and took us to the tarmac. Around 3.30 am we reached the US air force base within Kabul airport.

The Indian ambassador to Afghanistan had a meeting with American military officers. The Indian Air Force plane landed at 4 am in Kabul. We started boarding the flight. The Americans told us that all Indians must leave Kabul airport by 6 am. Hats off to the Indian government and its planning on how they evacuated us from Kabul. Everything was planned to precision.

When our flight took off from Kabul, there were moist eyes all around. Everybody was very emotional because they had lived to see another day. The flight flew over Tajikistan, over Iran, before arriving at Jamnagar in Gujarat. We took off from Kabul at 5.50 am and reached Jamnagar at 11.30 am IST.

When the IAF pilot told us that we were going to land at Jamnagar, the first thought that came to my mind was astronaut Rakesh Sharma's reply to Indira Gandhi from space: 'Saare Jahan Se Accha, Hindustan Hamara'. When I stepped on Indian soil, I lay down on the ground and kissed my homeland.

'My country, my India,' I said.

Thursday, 22 July 2021

CALLING ALL INDIANS: IMMEDIATE REFUNDS FOR REFUNDABLE AIR-TICKET CANCELLATIONS

 JUST REACH THIS WEBSITE

We had booked a REFUNDABLE Kuwait Airways flight Mumbai-Milan-Mumbai from the Make My Trip website in December 2019 for a conference. Our visit dates were from 11th October 2020 to 18th October 2020. But due to COVID, we had to cancel the tickets from the MakeMyTrip app in August 2020. Make sure you book REFUNDABLE TICKETS at the outset. You have this option on most sites.

Kuwait Airways deducted a nominal amount and returned a large amount of our refund to MakeMyTrip in September 2020 itself. But, since then, we had to run from pillar to post between MakeMyTrip and Citibank since our Refund amount never got credited to the credit card account as promised. There was no response to numerous phone calls and mails sent to MakeMyTrip. Citibank was not involved in the delay.

Then, on 09th July 2021, I discovered the CPGRAMS site. CPGRAMS stands for Centralized Public Grievance Redress & Monitoring System. From that I got Direct PMO - Prime Minister's Office site - https://www.pmindia.gov.in/en/main/

From the site given above, in a few words, I wrote my Grievance to the PMO office, attached the relevant documents (there is such a facility on the site) and a miracle happened:

1. I immediately received a registration no. in my email with all details of my complaint.
2. I got the name, email ID and direct phone number of the officer to whom my complaint has been forwarded. It all happened in 1-2 days.
3. On 13th July I received an email from MakeMyTrip (on instructions of the Ministry of Tourism) asking for a few details.
4. Everyday, I could track the progress of my complaint myself by entering the registration number-complete Transparency!!

And then, another MIRACLE happened on 19th July 2021. The refund amount was CREDITED to the bank account by NEFT from Make My Trip!!

Really COMMENDABLE!! No words to praise this fantastic initiative by the government- and it REALLY WORKS!!

It just shows the efforts of the government towards bringing full transparency in their working and their genuine concern for their citizens and their grievances! Even foreigners who book through this site are welcomed freely.

I’m putting up this post so that it can help genuinely aggrieved citizens!!

CPGRAMS stands for *Centralised Public Grievance Redress & Monitoring System.

PMO site- https: //www.pmindia.gov.in/en/main/

Don't lose time or money-just use this tip. It is free of cost.

Wednesday, 21 July 2021

FOR ALL INDIANS: OUR HUMOUR ON THE NET

 ANSWERS CAN BE FUNNY

This was taken from a tourism blog where people could post queries if they were planning on making a trip to India. The answers are the actual responses by the website officials, who demonstrate tolerance and an excellent sense of humour.

Q: Does it ever get windy in India? I have never seen it rain on TV, how do the plants grow? (UK).
A: We import all plants fully grown and then just sit around watching them die.

Q: Will I be able to see elephants in the street? (USA)
A: Depends how much you’ve been drinking.

Q: I want to walk from Delhi to Goa – can I follow the railroad tracks? (Sweden)
A: Sure, it’s only three thousand kms, take lots of water.

Q: Are there any ATMs in India? Can you send me a list of them in Delhi, Chennai, Calcutta and Bangalore?(UK)
A: What did your last slave die of?

Q: Which direction is North in India? (USA)
A: Face south and then turn 180 degrees. Contact us when you get here and we’ll send the rest of the directions.

Q: Can I bring cutlery into India? (UK)
A: Why? Just use your fingers like we do.

Q: Can you send me the Indiana Pacers matches schedule? (France)
A: Indiana is a state in the United States of…oh forget it. Sure, the Indiana Pacers matches are played every Tuesday night in Goa; Come naked.

Q: Can I wear high heels in India? (UK)
A: You’re a British politician, right?

Q: Are there supermarkets in Bangalore, and is milk available all year round? (Germany)
A: No, we are a peaceful civilisation of vegan hunter/gatherers. Milk is illegal.

Q: Please send a list of all doctors in India who can dispense rattlesnake serum. (USA)
A: Rattlesnakes live in A-meri-ca which is where YOU come from. All Indian snakes are perfectly harmless, can be safely handled and make good pets.

Q: Do you have perfume in India? (France)
A: No, WE don’t stink in India.

Q: I have developed a new product that is the fountain of youth. Can you tell me where I can sell it in India? (USA)
A: Anywhere significant numbers of Americans gather.

Q: Do you celebrate Christmas in India? (France)
A: Only during Christmas.

Q: Will I be able to speak English most places I go? (USA)
A: Yes, but you will have to learn it first.

Q: Can I see Taj Mahal anytime? (Italy)
A: As long as you are not blind, you can see it anytime day and night

Q: Do you have Toilet paper? (USA)
A: No, we use sand paper. We have different grades

NOW FOR SOME RUSSIAN JESTS IN GOOD HUMOUR

Just as we have Ajit and Rajnikant jokes, in Russia they have Putin jokes.....

When Putin was late for school, the teacher punished the whole class for being early.

When Putin's phone rings in the theater, they pause the movie.

Doctor: "You have Cancer".
Putin: "Tell it, it has two weeks to live".

When Putin looks in the mirror, there's no reflection because there is only 1 Putin.

When Putin was born, he named his parents.

Russia didn't choose him, he chose Russia.

Putin Arriving at Foreign Country's Airport:
Customs Officer: "Occupation?"
Putin: "No, just visiting."

Putin calls 911 to ask what is their emergency.

Putin built the hospital in which he was born.

Putin never flushes the toilet, he just scares the shit out of it.

When Putin was born, he slapped the doctor for not crying.

When Putin didn't go to school, the school declared it a Holiday.

Stop calling him the Russian James Bond. James Bond is British Vladimir Putin.

When Putin creates an account, the terms and conditions agree with him.

When Putin coughs, Covid wears a mask.

Saturday, 29 May 2021

INVESTING IN WHISKY A PATHWAY TO PROFIT? PART II

 ALL THAT GLITTERS MAY NOT BE GOLD: STAY AWARE

In continuation of my previous post on the same subject, imagine your very own cask of whisky….it’s the ultimate indulgence, isn’t it? When you love whisky this much, owning your cask – or investing in one – is the icing on the cake, yes?  But icing can go off if you’re not careful….

There’s no denying that there’s a degree of romance involved.  It’s like owning your own little piece of Scotland, not to mention that it affords great bragging rights with your mates on WhatsApp and Signal. And, if you buy a cask when it first gets filled, you also get the enjoyment of watching it mature and tasting it at various intervals along its maturation journey – almost like watching your kids grow up!

It all sounds great on the surface, and plenty of people pay for and acquire a cask with the expectation that nothing could possibly go wrong.  After all, what’s the worst that could happen?  In ten years’ time, you’ve got 200-350 bottles of your own whisky to drink, sell, or give away!  But, for many people, it seems this end outcome causes more problems than joys. “How?  Why?”

Diehards in the Scotch Malt Whisky Society regularly get emails from people who are trying to sell and off-load their cask.  The circumstances are invariably the same each time:  They purchased a cask 8 to 12 years ago, but found that the additional costs and expenses involved to bring their bounty home were prohibitive, and they can no longer afford (or risk) to complete the deal.

In the period from 2008 to 2014 or so, such experts were getting at least two to three emails each month from people around the world who were trying to offload their cask.  Several distilleries – Springbank and Bruichladdich being two good examples – had cask purchase schemes in place for the general public in the late 1990’s and early 2000’s, and when these casks reached maturity at around 10 years of age, the purchasers discovered all the additional costs that weren’t instantly evident at the start of the process 10 years earlier. We’ll see what these costs and risks are in just a moment….

There’s a difference between owning or buying a cask of whisky and investing in one.  The former implies that you’re doing it for a bit of fun, and you plan on drinking, enjoying, and sharing your spoils when you eventually decide to bottle it.  Investing in a cask, on the other hand, suggests that the exercise is purely a financial affair, and you’re hoping to make a few bucks out of the deal.  Both alternatives are very different prospects, so let’s look at them separately:

BUYING A CASK

As explained in Part I, if you were tempted to buy your own cask of whisky as a means to “cut out the middle man” and to obtain some bottles of whisky cheaply, stop reading here and head down to your local liquor outlet instead.   Commercially available whiskies that you find in these outlets or in the online stores enjoy economies of scale that are beyond the humble cask-buyer, and the journey of buying, maturing, and bottling your own cask is not a path to cheap whisky.  Get back to mother earth now.

Several Scottish distilleries offer cask purchase schemes and, in fact, with the huge number of new distilleries establishing and opening in the last few years, the opportunities to buy your own cask are better than they’ve been for a long time.  Ardnamurchan, Glasgow, Ballindalloch, Lagg, Annandale, Lindores Abbey, Kingsbarns, and Ardnahoe are all just some examples of Scottish distilleries that have (or had) private cask purchase offerings in place for individuals. 

The schemes vary from distillery to distillery but, in most cases, your original buy-in purchase price will afford you somewhere between five and ten years of warehousing and a sample sent out to you once a year.  Additional fees and costs apply if you want to mature the cask and keep it warehoused beyond the initial allowance, or to obtain extra samples.

HIDDEN COSTS

The “hidden” or extra costs – and what catch so many people out – are the costs involved once the whisky is matured and deemed ready for bottling.  Nine times out of ten, the purchase price you pay at the start covers only the cask and spirit up until it’s deemed ready to bottle.   For whatever happens after that, the ball is in your court, as are the expenses. This aspect has been dealt with at length in the earlier article.

But if you’re flying this exercise solo, there are also some practical issues to deal with.  It all sounds fun at the start, but it’s a very different prospect when 250 bottles suddenly lob up on your doorstep.  How much of this do you really expect you’ll be able to consume yourself?  How much can you afford to give away to family and friends?  If you want to sell a few bottles (or a few hundred bottles) to re-coup some of your costs, how can you realistically and legally move that stock?  Your close friends or the colleagues you know through your whisky circles might drop around to your house and exchange cash for a bottle, but that might account for just 30 or 40 bottles if you’re lucky.  If you want (or need) to move 100, or even 200 or more bottles, then the complications and costs of acquiring a liquor licence come into the mix, and you’ve STILL got to find your market and buyers…and all at a price where you at least break even on your costs.

Some readers will be familiar with Facebook whisky groups like Dram Full ex-Australia, and plenty of other similar country-centric groups on Facebook and other Social Media forums.  With Social Media forums having a combined Facebook group membership of over 100,000 people, did you think a simple ad or announcement on Facebook would easily find your market and help you shift your bottles?  But joining a Facebook group and being willing to spend $200 or more on a bottle of whisky are two very different things and it seems a large proportion of those group’s members baulk at paying more than $100 for a bottle of malt when it’s sight unseen.  Experience has shown that social media groups will only help one move 30-50% of your cask, if one is lucky.  And they’ll want or expect discounts or other incentives, too, so the revenue you get might not be what you banked on.  Moreover, if you’re inviting people from other cities and states to buy your bottles, you’ll also need to organise and handle all the packaging and posting – no small or convenient task.

So, after all that, is it really worth it?  Is the work, cost, effort and expense rewarded?  I guess that depends on whether you find your cask tasty and how much you’re prepared to drink or give away.  But it certainly is nice to see your name on your own label.

INVESTING IN A CASK

Most of the pitfalls and additional expenses associated with investing in a cask are the same as what we’ve already outlined above. The key difference here is that the ultimate objective is to make money. That means divorcing yourself from the romance and fun of the affair, and focussing purely on ensuring every last drop of spirit is sold.

In such an instance, the easiest – and recommended – path is to simply sell the cask off once it’s reached maturity, i.e. let someone else take on the risk and hassle of bottling the spirit and selling it as a labelled product.  A cask of 10 years old matured whisky is worth more than a cask of freshly-filled newmake spirit, and so the exercise simply becomes an 8 to 12 year long-term investment that relies on the capital growth of your asset.  Of course, like every long-term investment, there are risks involved, and you need to consider these:

Will the whisky industry still be buoyant in 10 years’ time and will there be demand for your cask? If a bust follows the current boom, your cask might not attract the same interest or price-tag you anticipated when you first invested.

You may be obliged to pay UK duties and taxes, depending on how the transfer of ownership takes place and how the deal is negotiated. Bear in mind that excise, duty, and VAT generally increase over time, and so the taxes due in 10 years’ time will undoubtedly be more than what you can currently calculate.

Casks can get damaged. Leaks are not uncommon, and whilst it’s been a long time since a fire ripped through a Scottish warehouse, fire and loss of your cask is also an ever-present risk.  Or, as many distilleries found out in 2010, so is collapse and damage of a warehouse under extreme snow!  Most cask investment schemes offer insurance against such losses, up to an extent, but you’d want to check the fine print for yourself.

This is only applicable in the case of a sherried cask, but what if your cask is tainted with sulphur? If the sale of your cask at the end of its maturation relies on sending samples out to prospective buyers, you might be in trouble if those doing the sampling hold an anti-sulphur sentiment.

How reliable is the investment scheme and the distillery? Some distilleries offer schemes whereby the distillery buys the cask back from you once it’s matured, and the terms and prices of that buy-back are written into the initial contract.  Beware of any investment scheme that sounds too good to be true.  Remember that the end buyer of your cask – whether it’s the distillery, or a cask broker, or a whisky club such as the SMWS – has to meet all the costs associated with bottling, labelling, transporting, and selling the whisky, and it’s they that capitalise on the real or retail price of the whisky.  You are effectively just a wholesaler and must accept the smaller margins.   As investors in the infamous Nant Distillery found in Australia, not every investment scheme returns the dollars it originally promised. Matthew Hayden was among the losers.

Like any investment, consider what the return is and whether your money would be better placed somewhere else? You’re looking at least an 8 to 10 year wait for your return, and it’s not unreasonable to ask if your money would perform better if invested in some other fund or scheme for that same period.

Regardless of which of the above two routes you go down, remember that 10 years is a relatively long time into the future, and our crystal balls can get a bit cloudy when looking that far down the track.  Your health may be a different prospect in 10 years’ time, as might your circumstances and address.  If all the distillery knows about you is an email address, it’s easy for either party to lose track of one another if you re-locate or change your internet service provider.  And, whilst it’s a morbid thought, if you were to accidentally die at some point, make sure someone in your family knows that a cask in a foreign land forms part of your estate!

This is what WhiskyInvestDirect posted about their Investment Scheme:

Good returns from whisky maturation have been achieved over many years, but historically only distillers and blenders could benefit. Until now, that is.

                  

Launched in 2015, WhiskyInvestDirect changed that, by allowing private investors to buy quality whiskies at wholesale prices. Already some 3,500 users own enough to fill over 70,000 casks, that's the equivalent of 29 million bottles of maturing Scotch. Accounts range in size from £700 to £750,000. 

Economies of scale mean your whisky will be stored — still in the barrel — at exceptionally low cost, in the original distiller's bonded warehouse. Its safe storage there is evidenced every month by our published audit.

You will own the whisky as it matures, and when you decide to sell, via our trading exchange, you'll receive a transparently competitive price from other users and industry bidders. To date, mature whisky bought back by the trade has realised an average annualised return of over 10% for private investors — after all costs.

Together we profit through tackling this industry's greatest problem — the large working capital requirement of financing maturing stock.

On the other hand, investment specialists at Rare Whisky 101 (RW101) have expressed “worry” over the increased number of inexperienced investors buying new make spirit.

RW101, a rare whisky indexing, valuation and brokerage firm, recently released its review, outlining performance of rare whisky on the secondary market last year.

RW101 said it has brokered a number of sales of “exceptional” casks containing old liquid, including Ardbeg, Laphroaig, The Macallan, Highland Park and Springbank. However, the company said these sales were made by “sophisticated buyers with a wealth of experience in maturing stocks”, adding that it would not advise inexperienced investors or buyers to purchase “even the most sought after of casks” due knowledge about the loss of liquid in the maturation process.

In addition, the increased incidence of inexperienced investors looking at buying into new make spirit, that is, whisky that has not aged in the barrel, is “worrying” to RW101. “Malt and grain production is at an all-time high with distilleries being worked 24/7 to get more out of every last cell of years,” the group said. “Should the current negative trend for global sales of big brand blends continue, it would not be beyond the realms of possibility that there could be a whisky loch in a few years’ time.”

In order to generate funding to increase capacity, a number of whisky distilleries offer cask investment schemes to consumers, who can purchase either entire casks or shares in casks at a time before the liquid has aged.

While RW101 concedes that buying new make spirit from distilleries where it’s not usually obtainable “may not be disastrous”, the firm said such investments “might not yield the expected results”.

“The market for older casks of quality liquid from renowned top-tier distilleries, in our opinion, will continue to go from strength to strength,” RW101 said. “However, we’re strongly advising our customers against buying new make from less desirable single malt distilleries or new make single grain. Rarity, singularity and quality, again in our opinion, are crucial factors when looking at casks.”

HIGHER GLOBAL PROFILE FOR SCOTCH

The profile of this market, in recent years, has only been raised. And for investment, the opportunities have only grown with prices collectors are willing to pay exponentially increasing. Andy Simpson of RW101 (rare whisky 101) says:”One person’s investment or collection today can be another’s drink tomorrow. Stick to limited editions, single casks, discontinued bottles and older rarities from the iconic collector’s distilleries.”

TIPS THAT WILL STAND THE TEST OF TIME

TASTE TEST

In order to understand an investment, it’s imperative that investors get to experience it for themselves. Due to the pure nature of the commodity, this is possible by conducting educational virtual tastings. Not only does this give investors the chance to understand their investment from a different perspective, it also allows them to feel part of the investment they are making – something very unique in the general investment markets, as well as in the whisky sector.

KNOW WHAT TO LOOK FOR

It is important to look for a high alcohol by volume, which means you will get longevity in the spirit so that if you do intend on ageing it, whether it be anywhere from five to 50 years, a high ABV at any stage of investment will give you the maximum opportunity for growth in the investment.

UNDERSTAND THE BRANDS

It is essential to invest in a recognised brand name that you would see in the supermarket, on a recognised website like The Whisky Exchange or Master of Malt, or that you would see in duty-free. If you are buying or investing in a recognised name, you will be able to track the growth across the years by observing the year-on-year price and inflation increases.

If you are able to get hold of a name-brand whisky from 2020 or 2021, it will probably grow quicker than other whiskies distilled the previous year due to the lack of ability and increased demand, making it highly investable whisky.”

KNOWLEDGE IS THE KEY

When choosing your investment, make sure to investigate the distillery financial reports to see how well the company is performing, and look at future plans. Something small, such as a potential rebrand, could greatly increase the cask value.

KNOW WHERE TO FIND VALUE

With increased worldwide demand for whisky, including in America where tariffs have been reduced by President Joe Biden, the value of whisky in casks will only increase; in particular, more aged whisky, along with the value of that produced in 2020 and 2021 during the global pandemic due to the closures of distilleries, which meant that there was reduced supply.

LOOK FOR SPECIAL DROPS

The growth will definitely continue and cask values will keep on increasing, especially aged, rare and unique whisky, which will continue to outperform the standard single malts and keep meeting market expectations, with 2020 and 2021 casks likely to outperform them all.




 

A fair portion of the article quoted below has been used by me in my post. https://www.whiskyandwisdom.com/should-you-buy-or-invest-in-a-cask-of-whisky/