On Tuesday, the Telangana government approved an increase in beer prices, instructing that all existing stock should be sold at the new rates. United Breweries, which controls 70% of the beer market in Telangana, had stopped supplying beer earlier this year. The company halted deliveries because of delayed payments and the government’s failure to approve higher prices since 2019, which had impacted its finances.
In India, alcohol pricing is regulated by individual states, and it is an important source of tax revenue. The government buys alcohol and supplies it to stores in Telangana, where they had been rationing supplies to prevent hoarding and address shortages.
After the government order, United Breweries’ shares dropped by 1.2%. The company has not yet commented on the situation.
