Crisis Brewing: Telangana’s Beer Industry Faces Price Stalemate

The beer supply crisis in Telangana escalates as United Breweries and other industry leaders face unsustainable prices set by the state. The prices, outdated since 2018-19, have led to substantial losses and unpaid dues. The Brewers Association of India is urging prompt intervention to resolve this impasse.

A day after United Breweries, India's leading brewer, halted its beer supply to Telangana, the Brewers Association of India (BAI) expressed serious concerns about the state's pricing model's impact on industry sustainability.

BAI Director General Vinod Giri highlighted that the prices authorized by the Telangana government are based on outdated 2018-19 production costs, far below current market realities, leading to huge losses.

The crisis unfolded when United Breweries, which encompasses major brands like Kingfisher and Heineken, suspended supply to the Telangana State Beverages Corporation citing unadjusted basic prices since 2019-20. Despite a price review panel's efforts in 2024, necessary actions remain pending.

(With inputs from agencies.)