Kerala's distillers, brewers threaten state govt to suspend liquor supplies from next month

THIRUVANANTHAPURAM: The distillers and brewers in the state have threatened to suspend liquor supplies from next month if the state government will not announce a directive to increase the purchase price of liquor.

“We have made several requests to the Kerala government regarding increase in the supply price of liquor products to the sole wholesalers, the state-owned Kerala State Beverages Corporation (KSBC), but there has been no response and we have no other option but to stop supplies,” said The Kerala Bottlers and Distillers Federation (KBF) in a press statement.

In August last year, the KBF along with the Association of Distillers, Brewers and Vintners of India (ADBVI), had approached the state government. At that time, the alcohol prices had skyrocketed and suppliers began incurring huge losses.

However, the suppliers are forced to sell at prices last increased during 2009-10.

VR Ravindran of Amrut Distilleries, urges, “We understand the KSBC is likely to decide on the price increase in their next board meeting. It is our humble request to the government to consider our genuine request of a reasonable price increase considering the annual inflation for the last three years and approve the prices quoted by suppliers, without any cuts.”

Around 90 per cent of the liquor sold in the state is produced in the 11 distilleries in the state. It is sold through 708 bars and 383 state-owned retail outlets.

Over the last fiscal, the liquor sales in the state crossed a record Rs 7,000 crore, and the revenue by way of taxes to the state was over Rs 6,000 crore.

There is a demand for a increase of 10 per cent in supply prices, which will give the state government an additional revenue of Rs 600 crore.