United Breweries Limited (UBL), the company that makes Kingfisher beer, has taken a big decision on Wednesday. Under this, it has been announced to stop the supply of beer to telangana Beverages Corporation Limited (TGBCL) with immediate effect. TGBCL (Telangana Breweries & Distilleries Company Limited) has not increased the price of its beer since 2019-2020, due to which the company is incurring losses. UBL said that efforts were made to resolve the issue in the last two years, but to no avail.
UBL is incurring losses in Telangana
The company said in a BSE filing that it has decided to stop the supply of its beer to telangana Beverages Corporation as the corporation has not increased the price of the company's beer since the financial year 2020, due to which the scope of losses in the state is increasing. Along with this, the corporation has not paid the full amount for the beer supplied earlier.
The telangana government is not taking concrete steps
TSBCL is a government organization, it controls the sale of liquor in the retail and wholesale sectors in the state. It was formed in 2014 after separating from andhra pradesh Beverages Corporation Limited.
BL told the media, the company has a moral responsibility towards the stakeholders, in view of which beer is no longer being sold at a loss. The company also informed that on its behalf, the Brewers Association of india (BAI) had appealed to the telangana government several times to increase the prices to reduce the burden of rising inflation, but no decision has been taken on this yet.
Production cost increased, but not the price
The Mint, citing a letter sent by the association to the Excise Department and the cm of telangana, told in its report that even today, telangana pays the beer manufacturing companies at the rate of 2019. Meanwhile, the production cost of the companies increased by 35-40 percent. The government did not increase the price of beer to compensate for this. This has raised a question mark on the supply of beer in Telangana.
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