The Brewers Association of India (BAI) has appealed to the state government to immediately allow beer companies to enhance prices, which was last revised in 2019, given the problems they have been facing due to inflation. In a letter addressed to Chief Minister A. Revanth Reddy, BAI director general Vinod Giri said, “The current basic prices allowed to beer supplier companies in Telangana are based on 2019 costs.
Since then the cost of production has gone up by 35-40 per cent. However, the government has not allowed a basic price revision to compensate for this increase in cost of production. This has made operations in Telangana commercially unsustainable and future investments unviable.
” Recognizing the urgent need to increase supplier prices for beer, the incumbent state government had set up a price fixation committee (PFC) in July and directed all beer companies operating in the state to submit their proposal for revised declared prices that is the price at which companies supply beer to the state government. It also directed BAI to present an industry perspective on the cost of production of beer and other factors that may affect their prices in the state. As per BAI personnel, the process of submissions, presentations and industry consultations was concluded by the first week of August but there has been no further progress on this front.
In its letter to members of the PFC, the association mentioned, “While the government allows price increase to suppliers only .