Liquor prices in Telangana are expected to rise sharply as the ongoing war in West Asia continues to disrupt supply chains and production costs. Companies have requested a price increase of between 12% and 15% to cope with these challenges.
The conflict, particularly the tensions between Iran and Israel, has severely impacted the production of glass bottles, a critical component in the liquor industry. Reports indicate that production in major glass manufacturing centers across the country has dropped by nearly 40%, leading to a significant 20% increase in the price of empty bottles.
Distillery managements have expressed that a price hike is inevitable, especially with the liquor price review deadline in the state having passed without any adjustments since May 2023. This delay in review has left many companies grappling with rising costs and dwindling supplies.
Furthermore, disruptions in natural gas supply due to the ongoing conflict have compounded the issues faced by liquor bottle manufacturing units, making it increasingly difficult to maintain production levels.
Beer prices are also expected to see a rise, driven by high demand during the summer months and a reported 20% reduction in supply. This dual pressure on both liquor and beer prices is likely to affect consumers significantly in the coming weeks.
A judicial committee has been formed to review the price hike issue, led by a retired judge, indicating that the government is taking steps to address the situation. However, the outcome of this review remains uncertain.
As the situation evolves, observers are closely monitoring the developments, particularly the potential for further disruptions in the supply chain and any additional requests for price increases from distilleries.
Details remain unconfirmed regarding the exact timeline for the price adjustments, but the brewing crisis in the liquor industry is becoming increasingly apparent.
