Hyderabad: The Confederation of Indian Alcoholic Beverage Companies (CIABC) has appealed to the Telangana government to revise supply prices of alcoholic beverages in line with inflation, citing a lack of an annual price review system in the state. The industry body also urged the government to clear overdue payments of ₹2,800 crore along with ₹400 crore in interest, pending for over 45 days.
CIABC Director General Anant S Iyer stated that the cost of manufacturing and distribution has risen significantly since the last revision in May 2023, with input materials like extra neutral alcohol (ENA), malt spirit, packaging, transportation, and labour becoming costlier. Despite these hikes, price adjustments have not kept pace, squeezing the margins of producers.
Iyer highlighted the stark revenue imbalance, where the government retains over 70% of the MRP, leaving just 12–15% for manufacturers and 15–18% for retailers. “The government’s interim tax hikes have further strained manufacturers who are already absorbing inflationary pressure,” he said.
Another challenge flagged was the non-inclusion of alcohol under GST, which bars companies from claiming Input Tax Credit (ITC) on raw materials—leading to an extra 3–5% cost burden.
CIABC has requested a modest hike of ₹100–₹200 per case for Indian Made Foreign Liquor (IMFL) and a 5% increase in wine prices, amounting to ₹2.50–₹5 more per 180 ml bottle. While the beer sector has received price relief, spirits and wine producers still await adjustments.
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