Hyderabad: The state government is under pressure from liquor manufacturers to hike prices ahead of Dasara on September 30, when sales go up by nearly 50 per cent.
Threatening to stop liquor production if the prices are not hiked, the companies said that while costs had increased the government had not revised the rates since 2011.
The AP Cabinet on Saturday approved a hike in liquor prices. The TS government is likely to follow suit in a week or two, and clear a 10 per cent price hike.
With this, the cost of a quarter bottle (180 ml) of different brands of liquor is expected to increase in the range of Rs 6 to Rs 30.
Excise officials have submitted proposals to the government and are awaiting approval.
"The file is pending with the Chief Minister’s Office and the nod is expected before Dasara," said an official source in the TS Beverages Corporation Ltd.
The corporation enters into agreements with liquor manufacturers to supply over 100 alcohol brands in the state.
Earlier, fresh tenders used to be called every year for procurement of liquor. The practice was dispensed with in 2012, and the 2011 agreement is being renewed every year.
Liquor manufacturers have told the government that production cost has increased as there is shortage of molasses, which is the major liquor ingredient.
