Telangana Beverages Corporation Ltd has been given the permission to increase beer prices by 15 per cent. The directive has come from the Telangana government.
This decision follows a request from the Brewers Association of India (BAI) and comes after a brief supply halt by United Breweries Ltd.
On January 8 United Breweries Ltd (UBL) announced that it had decided to suspend the supply of its beer to Telangana Beverages Corporation with immediate effect.
The decision was made due to the non-revision of the company’s beer prices since 2019-20 leading to significant losses in the state, UBL stated in a regulatory filing.
Also read: Beer lovers having a hard day in Telangana
Additionally, UBL claimed that TGBCL had significant unpaid dues for past beer supplies, although specific details were not disclosed.
However, United Breweries later resumed supplies.
Welcoming the state government's decision, the BAI urged Chief Minister A Revanth Reddy to resolve outstanding issues within the beer industry.
"Though the increase being allowed is less than the increase in the cost of production or what the industry was expecting, we welcome it as it signals that the government is mindful of the concerns of the industry on business viability in the state and has followed through on its promise of looking into it," the BAI said in a statement.
A market-driven system is the most efficient way to benefit everyone, and we will continue to engage with the government to advocate for this approach, said Vinod Giri, Director General of BAI.
"We have full confidence in Chief Minister Reddy’s leadership and wisdom, and we hope the issue of outstanding payments for beer supplies made between February and August last year will also be resolved promptly," he added.
Giri further emphasised that Telangana is a key state for the beer industry. Being a high-volume product, locally-made beer has a significant economic impact on the state's supply chain, employment, ancillary industries, logistics, and the hospitality sector.
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