Beer Prices in Telangana Based on FY19 Cost with Rs 3900 Crore Unpaid Dues to AlcoBev Sector by BAI
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Beer Prices in Telangana Based on FY19 Costs
According to recent reports, the pricing of beer in Telangana is still rooted in the financial year 2019 (FY19) costs. This has raised concerns among various stakeholders in the alcohol beverage industry, particularly as the market dynamics have shifted significantly since then. The pricing structure, which has not adapted to inflationary pressures and changes in production costs, can impact both consumers and producers alike.
Outstanding Dues in the AlcoBev Sector
In addition to the stagnant pricing of beer, there is a pressing issue regarding unpaid dues amounting to Rs 3,900 crore that remain outstanding in the alcohol beverage (alcoBev) sector. The Brewers Association of India (BAI) has voiced its concerns over this situation, emphasizing the detrimental effects these unpaid dues have on the industry’s growth and sustainability.
These dues have been attributed to various factors, including delayed payments from distributors and state taxes that have not been settled. The BAI argues that this financial strain could hinder investment in the sector, ultimately affecting employment and innovation within the industry.
Impact on the Market
With beer prices remaining static and significant dues unpaid, the alcoBev sector in Telangana may face challenges in maintaining production levels and expanding market reach. As consumer preferences continue to evolve, producers may struggle to keep up without adjusting their pricing strategies and securing necessary funding.
Stakeholders have urged the government to address these issues promptly to foster a more conducive environment for the alcoBev sector. By resolving the outstanding dues and revisiting the pricing framework, the state can support the industry’s recovery and growth in the post-pandemic economy.
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