The Telangana State Excise Committee convened a meeting at Abkari Bhavan on Thursday to discuss the impending increase in beer prices across the state. To meet the ambitious liquor revenue targets, the Congress government sees raising liquor prices as the most viable solution.
It is reported that the Excise Committee, following directives from government officials, has decided to increase beer prices by 15-20%. The government is planning to raise the prices paid to breweries by 10-15%. To compensate for this, the Congress government is considering passing the burden onto tipplers.
Breweries have submitted proposals to the Excise Committee to raise their prices by 20-25%, citing significantly increased operating expenses. They highlighted that beer prices have not been adjusted since 2021, despite rising costs.
Earlier this month, the Excise Committee held discussions with representatives from each brewery, who requested an increase in payments from Rs. 289 to Rs. 450 per case to account for these heightened expenses. If the Telangana State Beverages Corporation agrees to this request, beer prices will likely rise by at least 20%.
Recently, the government announced plans to boost liquor revenue by Rs. 5,318 crore, bringing the target for the Excise Department to Rs. 25,617 crore. To achieve this, the state plans to both increase liquor prices and encourage higher consumption. Liquor sales and taxes generate approximately Rs. 35,000 crore annually. The government now aims to raise this to Rs. 45,000 crore, with the price hike in beer being a crucial component of this strategy.