Beer prices in Telangana based on FY19 cost; Rs 3,900 crore dues remain unpaid to alcoBev sector: BAI
United Breweries suspended supply to Telangana, beer industry body BAI on Thursday 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.
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On Wednesday, United Breweries Ltd (UBL), which operates with popular beer brands like Kingfisher, Kalyani Black, Heineken, and Amstel Bier, announced to suspend the supply of its beer to Telangana State Beverages Corporation with immediate effect.
The decision has been taken 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.
Commenting on the development, Giri said: «We have repeatedly pointed out that the commercial viability of beer suppliers in Telangana has become far too stressed».
However, he also acknowledged that TSBCL set up a price fixation committee last year, which concluded its consultations and sittings in August 2024.
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