Hyderabad, February 11: The Telangana government has permitted Telangana Beverages Corporation Ltd to increase beer prices by 15 per cent. 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. Beer Prices in Telangana Based on FY19 Cost; Rs 3,900 Cr Dues Remain Unpaid to AlcoBev Sector: BAI.

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. Telangana Will Not Succumb to Pressure by Liquor Companies to Hike Prices, Says CM Revanth Reddy.

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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)