Liquor prices in Telangana are expected to increase due to the impact of the ongoing war in West Asia, with companies requesting a price hike of 12% to 15%. This anticipated rise stems from significant disruptions in the supply chain, particularly affecting the production of glass bottles.
The tensions between Iran and Israel have led to natural gas supply disruptions, which have severely impacted liquor bottle manufacturing units. As a result, production in major glass manufacturing centers across the country has dropped by nearly 40%, causing a ripple effect on the costs associated with liquor production.
Distillery managements have indicated that a price hike is inevitable, especially since the last liquor price review was supposed to occur every two years, but no changes have been made since May 2023. The price of empty bottles has increased by 20%, further compounding the financial pressures on distilleries.
In addition to liquor, beer prices are also expected to rise due to high demand during the summer months, coupled with a 20% reduction in supply. This situation has prompted companies to formally request the government to consider the proposed price increases.
A judicial committee has been formed to review the price hike issue, led by a retired judge, highlighting the seriousness of the situation. Observers are closely monitoring the developments, as the outcome of this review could significantly impact consumers and the market.
Details remain unconfirmed regarding the exact timeline for the price adjustments and the committee’s recommendations. However, the current trends indicate a challenging period ahead for both producers and consumers in Telangana’s liquor market.
