HYDERABAD: During peak summer, especially in May, beer sales in Telangana jump to almost 60 lakh cases a month — one of the highest in the southern states when it comes to consumption of alcohol. Probably bearing this in mind, the Telangana government has allowed breweries to start their operatins from May 4. The state has six breweries.
Sources said distilleries and liquor shops also stand a chance of reopening after the state cabinet meets on May 5 to discuss the way forward.
Following a representation from the Association of Liquor and Beer Suppliers of Telangana (ALBST) that beer stocks needed to be refined failing which they would suffer a huge loss, the government had decided to allow them to function from Monday. About two lakh to three lakh cases of beer is lying in the breweries, which needs to be refined by adding yeast to avoid bitterness, ALBST representatives said. Another four lakh cases of beer is lying in liquor shops.
“Otherwise, we could have lost Rs 90 crore if the existing stock is not refined immediately,” general secretary of Association of Liquor and Beer Suppliers of Telangana M Kameshwara Rao told STOI. He said the shelf life of beer in containers was six months.
No liquor sale cost Rs 2,000 crore loss to T
ALBST representatives said Telangana is a major beer market. The average sales of beer per month is about 34 lakh cases a month, while sales of other liquor brands are in the range of 29 lakh cases a month. “The beer sales touch 60 lakh cases a month, especially in May,” Kameshwara Rao said.
Ever since the lockdown was announced, the state government suffered a loss of about ₹2,000 crore revenue per month from liquor sales, while distilleries and breweries claim to have suffered a loss of ₹500 crore.
When it comes to liquor other than beer, distilleries are worried about the raw material. Grain spirit, an ingredient, gets contaminated if liquor is stocked for a long time and needs refinement. “We have also sought permission for processing of liquor raw material. The authorities said that the state government will take a call at the cabinet meeting on May 5,” Kameshwara Rao said.
The association members said to refine the raw material, the distilleries will have to spend 20-25% additional cost over and above the manufacturing cost. Meanwhile, industry sources said the government will earn about ₹700 crore a month even if the liquor shops are partially opened. “The revenues may not cross ₹700 crore as a majority of liquor shops are located in the red zone areas,” sources said.
Sources said distilleries and liquor shops also stand a chance of reopening after the state cabinet meets on May 5 to discuss the way forward.
Following a representation from the Association of Liquor and Beer Suppliers of Telangana (ALBST) that beer stocks needed to be refined failing which they would suffer a huge loss, the government had decided to allow them to function from Monday. About two lakh to three lakh cases of beer is lying in the breweries, which needs to be refined by adding yeast to avoid bitterness, ALBST representatives said. Another four lakh cases of beer is lying in liquor shops.
“Otherwise, we could have lost Rs 90 crore if the existing stock is not refined immediately,” general secretary of Association of Liquor and Beer Suppliers of Telangana M Kameshwara Rao told STOI. He said the shelf life of beer in containers was six months.
No liquor sale cost Rs 2,000 crore loss to T
ALBST representatives said Telangana is a major beer market. The average sales of beer per month is about 34 lakh cases a month, while sales of other liquor brands are in the range of 29 lakh cases a month. “The beer sales touch 60 lakh cases a month, especially in May,” Kameshwara Rao said.
Ever since the lockdown was announced, the state government suffered a loss of about ₹2,000 crore revenue per month from liquor sales, while distilleries and breweries claim to have suffered a loss of ₹500 crore.
When it comes to liquor other than beer, distilleries are worried about the raw material. Grain spirit, an ingredient, gets contaminated if liquor is stocked for a long time and needs refinement. “We have also sought permission for processing of liquor raw material. The authorities said that the state government will take a call at the cabinet meeting on May 5,” Kameshwara Rao said.
The association members said to refine the raw material, the distilleries will have to spend 20-25% additional cost over and above the manufacturing cost. Meanwhile, industry sources said the government will earn about ₹700 crore a month even if the liquor shops are partially opened. “The revenues may not cross ₹700 crore as a majority of liquor shops are located in the red zone areas,” sources said.
Coronavirus outbreak
Trending Topics
LATEST VIDEOS
More from TOI
Navbharat Times
Featured Today in Travel
Get the app