Liquor prices in Telangana are expected to increase significantly as the ongoing war in West Asia disrupts supply chains and raises production costs. Companies have requested a price hike of between 12% to 15%, citing the impact of the conflict on the manufacturing of glass bottles, which has seen production drop by nearly 40%.
The tensions between Iran and Israel have led to natural gas supply disruptions, severely affecting liquor bottle manufacturing units. As a result, the price of empty bottles has surged by 20%, further compounding the challenges faced by distilleries.
Distillery managements have indicated that a price increase is inevitable, especially as the liquor price review deadline in the state has come to an end. The last price review was supposed to occur every two years, but no changes have been made since May 2023, leaving many in the industry anxious about the future.
A judicial committee, led by a retired judge, has been formed to review the price hike issue, reflecting the seriousness of the situation. Observers are closely watching this development, as the committee’s findings could significantly influence the final decision on price adjustments.
In addition to liquor, beer prices are also expected to rise. The demand for beer typically increases during the summer months, but a 20% reduction in supply due to the current circumstances may lead to further price hikes.
As the situation unfolds, the impact of the war in West Asia continues to resonate throughout various sectors, with the liquor industry being one of the most affected. Details remain unconfirmed regarding the exact timeline for any price changes, but the pressure on manufacturers is mounting.
