The Congress-I government led by Chief Minister, Revanth Reddy has permitted the Telangana State Beverages Corporation Limited (TSBCL) to increase beer prices by 15%, following a request from the Brewers Association of India (BAI) and a brief supply halt by United Breweries which wants the government to clear its dues.
According to the revision, popular brands are going to cost more by ₹30 to ₹50 per bottle. While officials termed it a 15% increase, the actual maximum retail price (MRP), including taxes, has gone up by 15% to 19% for consumers.
Beer prices in Telangana (650 ml)
| Brand | Old MRP | New MRP | Difference |
| Heineken | 230 | 270 | 40 |
| Kingfisher Ultra Witbier | 320 | 370 | 50 |
| Kingfisher Ultra | 210 | 250 | 40 |
| Kingfisher Ultra Max | 220 | 260 | 40 |
| Amstel Strong | 190 | 220 | 30 |
| Kingfisher Premium | 150 | 180 | 30 |
| Kingfisher Strong | 160 | 190 | 30 |
| RCL | 150 | 180 | 30 |
| Green Deer | 150 | 180 | 30 |
| Haywards 5000 | 160 | 190 | 30 |
| Knock Out | 170 | 190 | 20 |
| Budweiser | 210 | 250 | 40 |
| Budweiser Magnum | 220 | 260 | 40 |
| Corona (330ml) | 210 | 250 | 40 |
| Hoegarden (330ml) | 230 | 270 | 40 |
On January 8, United Breweries Ltd (UBL) had suspended the supply of its beer to TSBCL due to unpaid dues for past beer supplies. UBL in a regulatory filing also stated that this decision was made due to the non-revision of the company’s beer prices since 2019-20 leading to significant losses in the state. Later, UBL resumed supplies.
BAI Welcomes Hike
The Brewers Association of India has welcomed the Telangana government’s decision to hike beer prices and urged the government to release the dues to the beer industry at the earliest. “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.
A market-driven system is the most efficient way to benefit everyone, and we will continue to engage with the government to advocate for this approach, said Vinod Giri, Director General of BAI. “We have full confidence in Chief Minister Reddy’s leadership and wisdom, and we hope the issue of outstanding payments for beer supplies made between February and August last year will also be resolved promptly,” he added.
Giri further emphasised that Telangana is a key state for the beer industry. Being a high-volume product, locally-made beer has a significant economic impact on the state’s supply chain, employment, ancillary industries, logistics, and the hospitality sector.
The government, it must be mentioned, had set up a price-fixing committee, comprising a retired judge, a retired senior IAS officer, and a chartered accountant. The committee, it is said, considered the price inflation in raw materials and beer prices in neighbouring states, before arriving at the revised prices.
According to official data, there are nine distilleries and six beer factories in Telangana, including one belonging to UBL. There are seven other beer companies that sell beer in Telangana but manufacture them in other states. Overall, 51 liquor and beer companies are selling 1,031 varieties of hard liquor and beer in the state through 2,620 liquor shops and 1,117 bars and pubs. These include 50 locally manufactured brands and 36 non-local brands. Every month, 45 lakh to 55 lakh cases of beer are sold, making Telangana one of the largest beer-consuming states. In comparison, only 30-35 lakh cases of hard liquor were sold, highlighting that beer is sold more in the state. The excise department’s annual contribution to the state exchequer is about ₹36,000-₹40,000 crore in revenue.
With summer around the corner, beer drinking in Telangana is going to see a surge, price hike or no price hike.