The Telangana government has issued orders to hike beer prices by 15% from February 11. An order issued by SAM Rizvi, Principal Secretary of the Revenue (Prohibition & Excise) Department, allowed the Telangana Beverages Corporation Limited (TGBCL) to revise beer prices as per the recommendations of the Price Fixing Committee (PFC) for 2024-25.
The Committee had recommended increasing the maximum retail price (MRP) of beer by 15%. The new prices will come into effect from February 11, said the order issued on February 10.
Earlier in January, beer manufacturer United Breweries Limited (UBL) briefly suspended the supply of popular beer brands such as Kingfisher, Heineken, Amstel Bier, and London Pilsner to Telangana, demanding an increase in beer prices by 33%. UBL cited outdated pricing policies that have not changed since 2019-2020, as well as unpaid dues, for its decision.
However, it soon resumed supply following discussions with TGBCL. TGBCL is a public sector entity and holds a monopoly over liquor distribution in the state.
When UBL announced that it was pausing its beer supply, Chief Minister Revanth Reddy said that his government “will not succumb to pressure by the companies.” However, he had also said that a decision on liquor price hike would be taken based on the report of the Price Fixation Committee headed by retired High Court judge, Justice Jaiswal.
The committee, which was set up by the state government in July 2024 to review how liquor and beer prices are fixed, had also consulted beer companies for suggestions.