Kingfisher beer: Kingfisher beer manufacturing company United Breweries Limited (UBL) has announced a big decision on Wednesday. Under this, it has been announced to stop the supply of beer to Telangana Beverages Corporation Limited (TGBCL) with immediate effect. TGBCL (Telangana Breweries & Distilleries Company Limited) did not increase the price of its beer from 2019-2020, due to which the company is incurring losses. UBL said that efforts were made to resolve this issue in the last two years, but to no avail.
UBL faces losses in Telangana
The company said in a BSE filing that it has decided to stop supplying its beer to Telangana Beverages Corporation as the corporation has not increased the price of the company’s beer since the financial year 2020, leading to widening losses in the state. Is. Along with this, the corporation has also not paid the full amount for the beer supplied earlier.
Telangana government is not taking concrete steps
TSBCL is a government organization, it controls the sale of liquor in retail and wholesale sectors in the state. It was formed in 2014 after it was separated from Andhra Pradesh Beverages Corporation Limited.
BL told the media that the company has a moral responsibility towards the stakeholders, in view of which beer is no longer being sold at a loss. The company also informed that on their behalf, the Brewers Association of India (BAI) has appealed to the Telangana government several times to increase the prices to reduce the burden of rising inflation, but till now no decision has been taken on this. .
Production cost increased, but not price
The Mint, quoting the letter sent by the association to the Excise Department and the CM of Telangana, said in its report that even today the prices at the 2019 rate are paid to the beer manufacturing companies on behalf of Telangana. Meanwhile, the production cost of companies increased by 35-40 percent. Here the government did not just increase the prices of beer to compensate for this. Due to this, a question mark has now been raised on the supply of beer in Telangana.
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