Hyderabad Liquor Prices Set to Soar Up To 15%

The Telangana government is considering a proposal to increase liquor prices by up to 15% in Hyderabad. Breweries have suggested a hike ranging from 12% to 15%, while distilleries have also requested upward revisions. These proposed increases are attributed to rising production and operational costs.

Factors contributing to the increased expenses include global supply disruptions affecting raw materials and higher fuel and natural gas prices. A significant 40% drop in glass production has also made bottling considerably more expensive. This situation follows a previous 15% beer price raise in February.

The government has not yet made a decision and has forwarded the breweries' recommendations to a judicial committee for assessment. This committee is expected to submit its findings within a week, after evaluating cost factors and market impact. A final call will be made based on this report, with an announcement anticipated in May.

Demand for beer and liquor typically surges during summer. Experts have warned of potential beer shortages if production costs remain unaddressed. For the state government, a price revision is expected to generate substantial additional revenue, estimated between Rs 130 crore to Rs 150 crore monthly. The government is reportedly considering a tiered pricing model based on bottle size, brand category, and tax rates, which could lead to differentiated increases for budget and premium brands.