Liquor prices in Telangana are expected to increase significantly, with companies requesting a hike of 12% to 15%. This anticipated rise is largely attributed to the ongoing war in West Asia, which has disrupted supply chains and increased production costs.
The tensions between Iran and Israel have particularly affected the natural gas supply, crucial for glass bottle manufacturing. As a result, production in major glass manufacturing centers across the country has dropped by nearly 40%, leading to a 20% increase in the price of empty bottles.
Distillery managements have indicated that a price hike is inevitable, especially since the liquor price review deadline in the state has ended without any adjustments. The last review was supposed to occur every two years, but no changes have been made since May 2023.
In addition to the expected rise in liquor prices, beer prices are also projected to increase. This is due to high demand during the summer months, coupled with a 20% reduction in supply, further exacerbated by the ongoing supply chain issues.
A judicial committee, led by a retired judge, has been formed to review the price hike issue, reflecting the seriousness of the situation. As the industry grapples with these challenges, observers are closely monitoring the developments.
Details remain unconfirmed regarding the exact timing of the price increases and the outcomes of the judicial committee’s review. However, the impact of global tensions on local markets is becoming increasingly evident, raising concerns among consumers and industry stakeholders alike.
