Today a bad news has come for beer drinkers. Now you have to spend 15% more to buy every bottle or can. The Telangana government has announced an increase in beer prices, and these new rates have come into force from today.
Along with this, the government has also issued an order that old MRP beer bottles and can also be sold at new prices. However, this price increase will not affect all consumers.
Telangana government increased beer prices
The Telangana government has increased the prices of beer in the state. Now consumers will have to pay 15% more to buy beer in Telangana.
Last month, United Beverage Corporation Limited (TGBCL) stopped the supply of beer in Telangana. There were two main reasons for this:
- There was no change in prices from 2019-20, causing damage to the company.
- The previous beer supply was not paid.
This attitude of the government was causing financial loss to the company, due to which the sale of beer in Telangana had to be closed temporarily.
India’s largest beer company’s market influence
The United Bruge is India’s largest beer manufacturer, which makes a popular brand like Kingfisher. The company has a 70% share in the Indian market.
- The company sells 6 crore 12-boat boxes every year.
- In Telangana, the government supplies liquor from companies and supplies retail stores.
- The retail price of beer in Telangana is Rs 300 per box, while in Maharashtra it goes up to Rs 500 per box.
Beer is expensive due to tax and retail margin
According to the Brucks Association of India, most states in India have 5-6 times the consumer price (MRP) production cost. The main reasons for this are high taxes levied by the states and margins of retailers.
