THIRUVANANTHAPURAM: The retail selling price of liquor will go up by Rs 10 to Rs 20 from Monday, October 3, as the Kerala State Beverages Corporation (KSBC) has decided to make a four percent increase in its profit margin. Though the liquor producers had demanded up to 10 per cent increase in the price, the KSBC board that met on Thursday decided to put on hold the demand till the next fiscal. However, considering the increasing handling expenses of the corporation, the profit margin was increased.
KSBC managing director H. Venkatesh said that the price hike was effected as the corporation was incurring losses owing to increasing handling charges. With the four percent hike in warehouse price, the minimum hike after rounding off would be Rs 10 and the maximum around Rs 20. “For liquor brands priced around Rs 500 a full bottle, the new price would be Rs. 510 and for the premium brands priced above Rs 1000, the hike would be Rs 20,” said a KSBC official.
During the tenure of the previous UDF government, the profit margin of KSBC was reduced to prevent exorbitant hike in retail prices after the government imposed additional taxes. Subsequently, the corporation was facing an annual deficit of Rs 25 crore. “With the fresh price hike, we hope to get additional revenue of Rs 20 crore annually. Even then KSBC will have a Rs. 5-crore deficit,” Mr Venkatesh said.
