Telangana Government Stands Firm Against Liquor Companies' Pressure to Raise Beer Prices

Telangana's Chief Minister, A Revanth Reddy, has firmly stated that the state will not yield to liquor companies' demands for a price increase. This statement comes amid a standoff with United Breweries, which recently halted beer supplies to Telangana Beverages Corporation Ltd due to unchanged prices since 2019-20.

United Breweries Ltd announced on Wednesday that it would stop supplying beer to the Telangana Beverages Corporation immediately. The company cited the lack of price revision since 2019-20 as the reason for this decision, which has resulted in substantial losses. Additionally, they mentioned significant unpaid dues from previous beer supplies without providing specific details.

Price Review and Committee Involvement

The Chief Minister instructed officials to review beer prices in neighbouring states like Andhra Pradesh and Maharashtra. A decision on any price increase will be based on a report from the Price Fixation Committee, led by a retired high court judge. This approach aims to ensure a fair assessment of the situation.

During a meeting, Reddy highlighted that pending bills were settled with the excise department last year. He urged finance department officials to clear outstanding dues from the previous BRS regime systematically. This move is part of an effort to maintain financial transparency and accountability.

Transparent Selection Process for Liquor Suppliers

The Chief Minister emphasised the need for a transparent process in selecting liquor suppliers for Telangana. Officials have been directed to adopt a clear mechanism for choosing companies willing to supply liquor. This includes issuing notifications within a month for new company applications.

Reddy also advised officials to adhere strictly to rules when permitting new liquor suppliers in the state. Companies must apply using their brand names only, and their quality standards and supply capacity will be thoroughly evaluated during selection.

Simplified Trade Policy for New Brands

The excise and prohibition department officials have been tasked with implementing a simplified trade policy. This policy will facilitate the introduction of new liquor brands by companies already supplying alcohol to the corporation. The aim is to streamline processes while maintaining quality standards.

United Breweries Ltd expressed that continuing beer supply to TGBCL is no longer feasible due to unchanged prices and unpaid dues. The company had previously pressured the government for a 33.1% price increase, but the Chief Minister reiterated that Telangana would not succumb to such demands.

The state's firm stance against price hikes reflects its commitment to maintaining fair pricing practices. By involving a Price Fixation Committee and ensuring transparency in supplier selection, Telangana aims to address industry challenges effectively while safeguarding consumer interests.