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%. The conflict has disrupted supply chains, particularly affecting glass bottle production.
Distillery managements have indicated that a price increase is inevitable, especially as the liquor price review deadline in the state has ended. The last review was supposed to occur every two years, but no changes have been made since May 2023.
The ongoing tensions between Iran and Israel have severely impacted natural gas supplies, which are crucial for liquor bottle manufacturing units. As a result, production at major glass manufacturing centers in the country has dropped by nearly 40%.
Additionally, the price of empty bottles has surged by 20%, further contributing to the anticipated increase in liquor prices. Observers note that these rising costs will likely affect consumers as the summer season approaches.
Beer prices are also expected to rise, driven by high demand and a 20% reduction in supply. This combination of factors is creating a perfect storm for price hikes in the liquor market.
A judicial committee has been formed to review the price hike issue, led by a retired judge, but details remain unconfirmed. The outcome of this review could significantly impact the future pricing of liquor in the region.
