Telangana Chief Minister A. Revanth Reddy has rejected the beer industry’s request for a price hike of Rs 10 per bottle, despite claims from beer companies that production costs have risen by nearly 40% since the last price revision in 2019.
The Brewers Association of India (BAI) had written to the Chief Minister, arguing that the current pricing structure no longer reflects the increased production costs. They claimed the lack of a price adjustment has made operations in Telangana increasingly unsustainable. However, Revanth Reddy has firmly opposed any price hikes, calling out what he described as “arm-twisting tactics” from the beer companies. He also stated that the government will not provide tax benefits to the industry.
The Telangana government had set up a Price Fixation Committee (PFC) in July to review the situation, asking beer companies to submit proposals for revised prices. However, no progress has been made since industry consultations ended in early August. BAI pointed out that previous price hikes in 2018 and 2022 were far below the actual rise in production costs, and beer prices in Telangana remain 30-50% lower than in neighboring states.
In response, Revanth Reddy emphasized that the Congress government would not give in to the alcohol industry’s demands. He made it clear that the state would continue to offer the lowest beer prices in the region and warned that companies would not be able to pressure the government.
