Telangana Beer Price Hike: State Govt Approves 15% Increase Amid UBL Supply Issues

The Telangana government has authorized Telangana Beverages Corporation Ltd to raise beer prices by 15 percent. This move follows a request from the Brewers Association of India (BAI) and comes after United Breweries Ltd (UBL) temporarily halted its beer supply to the Telangana Beverages Corporation. On January 8, UBL announced the suspension of its beer supply to the corporation, effective immediately, as reported by PTI.

The decision was prompted by the fact that the company's beer prices had not been revised since 2019-20, resulting in substantial losses for the state, according to United Breweries Ltd (UBL) in a regulatory filing. UBL also mentioned that Telangana Beverages Corporation Ltd (TGBCL) had significant outstanding dues for past beer supplies, although no specific details were provided. However, UBL later resumed its supply. The Brewers Association of India (BAI) welcomed the state government's decision and urged Chief Minister A Revanth Reddy to address the pending issues within the beer industry.

"Though the increase being allowed is less than the increase in the cost of production or what the industry was expecting, we welcome it as it signals that the government is mindful of the concerns of the industry on business viability in the state and has followed through on its promise of looking into it," the BAI said in a statement.