No soft drink status to beer yet — Govt

After the Uttar Pradesh Government announced liberal policy to issue licenses for sale of beer, there have been apprehensions that the Maharashtra Government would take a similar decision. However, no such proposal is being considered by the government, he said.

Chavan said the beer manufactuers had submitted a memorandum to the Government urging reduction in taxes on beer to tackle illicit import of the liquor into the State from neighbouring states where it is sold at much low prices. Further, since the beer factories in the State are passing through a difficult stage due to low sale, they had requested the government to issue more licences for beer bars and liquor shops. The demands are under consideration of the government, he said but added that there would be no deviations from the current rules and regulations being adopted while permitting sale of liquor.

Of the 11 beer factories in the State, four are almost closed while the rest seven are incurring heavy losses. The beer manufacturers have expressed fear that they would have to close down the factories if they continue to incur losses. A bottle of beer costs Rs 50 to 55 in Maharashtra while it is sold at Rs 35 to 40 in other states. This has adversly affected the production of beer which has come down to 45 per cent during the last few years. The government stands to lose revenue of Rs 200 crore every year if the beer factories in the State down their shutters, the beer manufactuers have told the government.