Beer Prices in Telangana Hiked by 15% from Today; Here’s Why

Telangana: The Telangana state has raised beer prices by 15%, effective today, February 11. 

This change is in line with a recent government order, which also directs that all existing stock be sold at the new, higher prices.

This order follows a supply disruption last month when United Breweries, the company behind Kingfisher beer, temporarily halted its beer sales to the state. United Breweries blamed delayed payments and a lack of approval for price hikes since 2019/20 for the halt. The company, which holds a massive 70% share of the Telangana beer market, has been struggling financially due to these issues.

Beer prices in Telangana have been relatively lower compared to other states like Maharashtra. A case of beer in Telangana costs around ₹300, while in Maharashtra, the price is about ₹500 per case. This price gap is mainly due to taxes and margins added by retailers, making beer much more expensive in other parts of India.

United Breweries’ halt in sales wasn’t the only issue in India’s booming alcohol sector. Big companies like Diageo, Pernod Ricard, and AB InBev are also facing pressure, collectively seeking over $466 million in outstanding payments from various states.

Beer Prices Rise in Karnataka

In addition to Telangana, Karnataka raised beer prices in January, with some brands seeing a ₹10-45 increase per 650ml bottle. This hike came after the state government finalized new beer pricing regulations.