Liquor prices in Telangana are expected to rise significantly due to ongoing conflicts affecting supply chains and production costs.
Liquor prices in Telangana are anticipated to rise as the ongoing war in West Asia disrupts supply chains and increases production costs. Companies have requested a price hike of 12% to 15% to offset these challenges.
The conflict between Iran and Israel has severely impacted the supply of natural gas, which is 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 significant increase in the price of empty bottles by 20%.
Distillery managements have indicated that a price increase is inevitable, especially since the liquor price review deadline in the state has lapsed. The last review was supposed to occur every two years, but no changes have been made since May 2023.
In addition to liquor, beer prices are also expected to rise due to high demand during the summer months, compounded by a 20% reduction in supply. This situation has prompted a judicial committee, led by a retired judge, to be formed to review the price hike issue.
As the state grapples with these economic pressures, observers are closely monitoring the situation. The implications of these price hikes could affect consumer behavior and the overall market for alcoholic beverages in Telangana. Details remain unconfirmed regarding the exact timeline for any price adjustments or the outcomes of the judicial review.
