Liquor prices to go up in Telangana from Diwali

Hyderabad: Tipplers will have to shell out more money from Diwali as the prices of all brands of alcohol are set to increase under the new Excise Policy that would come into effect from October.

Top sources in the State Excise and Prohibition department told The Hans India that they had recommended 20 per cent hike in alcohol prices taking into account various issues that were brought to the notice of the department by the liquor manufacturers - distilleries and breweries.

The sources said that the new retail prices of various liquor brands have been proposed in the draft Excise Policy by revising Excise duty on each brand. Chief Minister K Chandrasekhar Rao will take a final decision at a high-level meeting with Excise officials after his return from New Delhi.

The distilleries had put up the demand before the government to revise the prices on the grounds that they were unable to cope with the financial burden in view of the increased cost of manufacturing of Indian made liquor (IML), wine and Indian made foreign liquor (IMFL). They had submitted the representation to the Excise department about three months back.

The distilleries wanted an increase by at least 15 per cent on IML and 20 per cent on IMFL per case (containing 24 bottles weighing each 375 ml) to meet the increased expenses on liquor production. They also pointed out that the prices of liquor were not increased for past three years. Earlier there used to be revision of the price once every two years.

The official sources said that the increase in liquor prices will not only help the manufacturers but also the government to earn more revenue to meet the increased financial requirement for the implementation of development and welfare programmes.

The annual revenue target from the sale of liquor for 2016- 17 has been put at Rs 14,000 crore as against total revenue of Rs 12,000 crore earned last year.