Beer lovers in Karnataka might feel a pinch in their pockets as the state government is likely to increase beer prices once again. As per media reports, the draft notification proposing a hike in beer duty was released in August 2024 and the final notification confirming the increase was issued recently.
The revised rates with a hike are expected to be imposed, starting from January 20. However, Excise Minister RB Thimmapur said that no additional decisions had been made yet.
How much price increase is expected?
Reportedly, the new prices might reflect a rise of Rs 10 to Rs 50 depending on the brand of the beer, which amounts to a 10 to 20 per cent increase in the price of the mainstream and premium segments of beer.
Brewers Association of India (BAI) says price viability has become highly stressed
After United Breweries Ltd (UBL), which operates with popular beer brands like Kingfisher, Kalyani Black, Heineken, and Amstel Bier, announced to suspension of the supply of its beer to Telangana State Beverages Corporation with immediate effect, last week, the beer industry body BAI said the commercial viability of prices set by the state government has become far too stressed.
The prices allowed to supplier companies are actually below the cost of goods supplied as these prices are based on the cost of production in 2018-19, said Brewers Association of India (BAI) DG Vinod Giri.
The decision was taken by UBL due to the non-revision of the basic price of the company's beer from 2019-20 by Telangana State Beverages Corporation Ltd (TSBCL), resulting in huge losses in the state, said United Breweries Ltd (UBL), now controlled by Dutch multinational brewing company Heineken NV.
BAI, which represents leading beer markers - United Breweries, ABInBev and Carlsberg, had earlier sent a representation to Telangana government in November 2024 on the issue and had said the production cost has gone up by 40 per cent due to rising input costs.
(With PTI inputs)