Kingfisher and Heineken beer supply will continue in Telangana as UBL patches up with govt

“We have been in talks with TGBCL, and these have been constructive decisions. TGBCL has assured us to address our issues on pricing and outstanding payments in a time-bound manner,” said the company. “Until we get more information, we have decided to restart our supplies toTGBCL for the time being. This is an interim decision in the interest of consumers, workers and stakeholders,” it added.

“The government has promised to pay outstanding dues in instalments, and about the demand for a 33 per cent hike in beer prices, the government has stated that prices will be revised as per the recommendations of the price revision committee, the report of which is already before the government for its consideration,” an official told The Indian Express, adding that the committee, comprising a retired Judge, a retired senior IAS officer, and a chartered accountant, has been meeting with officials at the secretariat for the last three days.

“The government will take a decision, with a likely increase of 10 to 15 per cent, but certainly not 33 per cent,” the official said, adding a hike of 6 per cent was provided in the last two instances. According to officials, the committee considered the price inflation in raw materials and beer prices in neighbouring states. “The government wants the public to be happy, its coffers to suffer no losses, and the company to make its profit. This is a common point with which a price hike will be announced,” he said.

According to TGBCL, the beer stocks of the two brands have been decreasing fast since its earlier decision. A decision in the interest of the people, government, and the company was in the pipeline as discussions progressed over the last few days.

The Telangana government owes Rs 3,600 crore to various beverage companies, including more than Rs 658 crore to UBL, of which about Rs 2,400 crore is pending from the last government’s term. UBL had said that the Brewers Association of India (BAI) made multiple representations to the government regarding the industry-wide challenges, urging price increases to offset inflation, but there had been no resolution. UBL also said it contributed more than Rs 24,500 crore annually to the state’s revenue.

According to official data, there are nine distilleries and six beer factories in Telangana, including one belonging to UBL. Overall, as many as 51 liquor and beer companies are selling 1,031 varieties of liquor and beer in the state through 2,620 liquor shops and 1,117 bars and pubs. Every month, 45 lakh to 55 lakh cases of beer are sold, making Telangana one of the largest beer-consuming states. Compared to this, only 30 to 35 lakh cases of liquor were sold, making Telangana one of the states where beer is sold more than liquor. The Excise Department’s annual contribution to the state exchequer is about Rs 36,000 to 40,000 crore in revenue.