Hyderabad, April 6 (RAHNUMA):Liquor and beer prices in Telangana are set to rise, driven by global supply disruptions and surging seasonal demand. The ongoing geopolitical tensions, particularly the war involving Iran and the United States, have impacted fuel availability and natural gas supplies, pushing up production costs. While the demand for alcohol typically surges during the Summer season and moreover, beer sales specifically witness a massive spike during the month of May, reports suggest that liquor price and beer prices in particular are poised to rise in the near future.
The ripple effect is being felt in the glass manufacturing sector, where production has dropped by nearly 40%, leading to a 20% increase in bottle costs. Distillery owners, unable to absorb the burden, have urged the government to approve a 12–15% hike in liquor prices.
A government-appointed panel, led by a retired judge, is currently reviewing the proposal. Sources indicate that the revised prices may be announced in May and implemented in phases across multiple slabs based on bottle size and category. Based on the committee’s recommendations, there is a possibility that the proposed price hike will be implemented in a phased manner, categorized across five distinct slabs. Based on factors such as bottle size (90 ml / 180 ml / 375 ml / 750 ml), brand / price range slabs (low-cost liquor, mid-range, and premium brands), and the tax slab structure, an exercise is currently underway to determine a price hike. It is reported that the government is expected to announce the new prices in May, based on the recommendations provided in the report submitted by the committee.
Meanwhile, beer prices could also see another hike. With summer demand expected to surge by up to 30% and supply likely to drop by 20% due to bottle shortages and rising Aluminium cans costs, brewing companies are pressing for a price revision. A shortage in the market cannot be ruled out if the gap persists.
