Liquor prices in Telangana, including beer and whisky, may increase soon as the state government prepares to revise rates amid rising production costs and supply issues. A final decision is expected in May.
The possible price hike is mainly due to increasing input costs and global supply disruptions. One major reason is the shortage of natural gas, linked to ongoing tensions in West Asia involving the US, Israel, and Iran. This has significantly raised the cost of manufacturing glass bottles, which are widely used in the liquor industry.
Due to limited gas supply, glass production across the country has dropped by nearly 40%. Some factories have reduced output, while others have temporarily shut down. As a result, the cost of empty bottles has gone up by around 20%, putting pressure on distillers.
Liquor companies say the current pricing is no longer sustainable and have approached the excise department, requesting a price increase of about 12% to 15% to cover rising costs.
Normally, liquor prices in Telangana are revised every two years. The last revision was done in May 2023, and the next was due in May 2025. However, the process was delayed, and the government has now started a fresh review. A committee led by a retired judge has been formed to study both global factors and industry demands before giving its recommendations.
Instead of a flat hike, the government is considering a slab-based pricing system. Prices may vary depending on bottle size (from 90 ml to 750 ml), brand category, and tax structure. This means budget and premium liquor could see different levels of price increase.
Beer demand usually rises by around 30% during the summer season, but shortages of glass bottles and rising aluminium can costs have added to the problem. Despite a price increase in February, companies are now pushing for another hike. Early signs of supply shortages are already visible, and beer prices may go up by ₹15 to ₹25 per bottle.
The liquor industry is a major source of revenue for the state, contributing around ₹40,000 crore annually. Officials are also worried that continued supply shortages could lead to black-market activities.
Overall, global disruptions are now affecting local markets, and consumers are likely to feel the impact through higher prices, especially during the peak summer season.
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