Shortage of beer in state

Deccan Chronicle, 08-May-2009
Hyderabad May 7:
The tussle between top beer companies and the Andhra Pradesh Beverages Corporation Limited over the issue of price revision has hit the supply of beer to the state.

The supply has fallen to 24 lakh cartons while the demand in the state is approximately 35 lakh cases.

Bars and restaurants are unable to convince consumers about the unavailability of their favourite brands.

Sources said APBCL has stopped procurement of beer from SABmiller India and United Breweries as it is miffed with them since they approached the AP High Court seeking price revision last year.

The Corporation had revised the price in 2005 with 9 per cent hike and refused to hike the price further saying consumers should not be burdened. The companies argued that the price must be revised again as the cost of raw material and transport charges have increased.

“Monopoly of APBCL is the main reason behind the tussle,” said an executive of a beer company. “The state will lose Rs100 crore tax revenue in the current financial year due to the flawed policies of the Corporation.”

He said the beer companies are ready to supply stocks at current rates. “However, the corporation is misusing the powers invested with it.”