THIRUVANANTHAPURAM: Liquor price will increase by about five per cent from June 1. The Kerala State Beverages Corporation (KSBC) has decided to increase the warehouse margin by five per cent, from 24 per cent to 29 per cent. Increasing operational costs and a dip in revenue following closure of many liquor outlets and bars in view of the Supreme Court’s distance norms were cited by the corporation as reason for the price hike. Once the hike comes into effect, the price of brands priced around Rs 500 will go up by about Rs 25 and those priced around Rs 1,000 will go up by around Rs 50, sources said.
The corporation is expecting to improve annual profit by about Rs 20 crore to Rs 25 crore with this hike. It is the second price hike after the LDF came to power. In October last year the warehouse margin was increased by four per cent citing increase in operational costs, leading to a price hike in the range of Rs 10 to 20.
Mr Venkatesh said that increasing labour costs, transportation charges and building rents forced the corporation to make a marginal hike in prices. The corporation was reportedly facing a dip of Rs 100 crore in monthly revenue following the closure of many retail outlets an bars from April 1 following Supreme Court ban on liquor outlets with in 500 metres from either sides of highways. Meanwhile, the liquor producers are also demanding hike of 10 to 30 per cent for various brands. The corporation has not yet allowed it.
