Liquor prices in Telangana are expected to increase by 12% to 15% as supply chain disruptions from the ongoing war in West Asia impact production costs. The situation has escalated due to tensions between Iran and Israel, which have severely affected the manufacturing of glass bottles, a crucial component in liquor packaging.
Distillery managements have indicated that a price hike is inevitable following the expiration of the liquor price review deadline in the state. Companies have formally requested the government to approve the proposed price increases, citing the urgent need to adjust to rising costs.
Natural gas supply disruptions, a direct consequence of the conflict, have led to a nearly 40% drop in production at major glass manufacturing centers across the country. This has resulted in a 20% increase in the price of empty bottles, further straining the liquor industry.
In addition to the expected rise in liquor prices, beer prices are also projected to climb due to high demand during the summer months, coupled with a 20% reduction in supply. This dual pressure on prices is likely to affect consumers significantly.
The last price review was scheduled to occur every two years, but no adjustments have been made since May 2023, leaving many in the industry anxious about the future. A judicial committee has been formed to review the price hike issue, led by a retired judge, aiming to provide clarity on the situation.
Details remain unconfirmed regarding the exact timeline for the price increases and the committee’s recommendations. As the situation develops, stakeholders are closely monitoring the impact of these changes on both the industry and consumers in Telangana.
