The Congress government is reportedly considering a substantial hike in liquor prices as part of a revenue-boosting strategy. Due to lower-than-expected excise revenues, officials are reportedly planning to raise the prices of beer by Rs. 20 and liquor by Rs. 20 to Rs. 70 per quarter, which could generate an estimated additional monthly revenue of Rs. 1,000 crore.
Recently, CM Revanth Reddy, along with the Chief Secretary of the Commercial Taxes and Excise Department, reviewed the revenue shortfall and ordered strict enforcement measures to curb illegal liquor, including the local Gudumba. In contrast, Andhra Pradesh is looking at price adjustments to equalize liquor costs, making Telangana’s hike a potential shock to its consumers.
Earlier in May 2023, the previous government had lowered liquor prices, reducing beer by Rs. 10 and other spirits by Rs. 20. However, the Revanth government is reversing these reductions to meet revenue goals. Reports indicate that the Excise Department is expediting the price revisions.
As for production, Telangana’s six breweries produce approximately 88 crore liters of beer annually, with Telangana State Beverages Corporation Limited purchasing beer at Rs. 289 per case for light beers and Rs. 313 for strong beers. When sold to consumers, the price escalates from Rs. 24 per bottle at the brewery to around Rs. 150. Breweries have approached the Excise Committee to raise prices, citing increased operational costs and requesting that the Corporation pay Rs. 450 per case, which could lead to a 20% hike in retail prices.
The government’s 2024 excise revenue target is set at Rs. 45,000 crore, up from Rs. 35,000 crore in 2023. This includes an increase of Rs. 5,318 crore from liquor revenue alone, with officials urging increased sales and higher prices to meet these goals.