Hyderabad: The Brewers Association of India (BAI), representing some of the country’s largest beer producers including United Breweries, AB InBev, and Carlsberg, has called on the Telangana government to immediately approve price increases for beer suppliers to address escalating production costs.
In a letter to Chief Minister K. Chandrashekar Rao, BAI Director General Vinod Giri highlighted that the current beer prices in the state are based on cost submissions from 2019. Since then, he noted, the cost of production has risen by 35-40%, but the government has not allowed any revision in the basic price to account for this inflationary increase. This, according to Giri, has made operations in the state commercially unfeasible and has undermined the viability of future investments in the sector.
The Telangana government had recognized the need for price adjustments earlier this year. In July 2024, it formed a Price Fixation Committee (PFC) and instructed all beer companies operating in the state to submit proposals for revised prices—the price at which beer is supplied to the government. Additionally, the BAI was asked to present an industry perspective on the rising production costs and other factors influencing beer pricing.
While the submission process and industry consultations were completed by the first week of August 2024, BAI officials expressed frustration that there has been no further progress or decision on the matter since then. The association is now pressing for urgent action to ensure the sector’s sustainability in the state.
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