THIRUVANANTHAPURAM: Distillers and brewers in Kerala Thursday threatened to suspend liquor supplies from next month if the state government fails to increase the purchase price of liquor.The Kerala Bottlers and Distillers Federation (KBF) in a press statement here said: "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."
The KBF along with the Association of Distillers, Brewers and Vintners of India (ADBVI), had approached the state government in August 2011, when alcohol prices had skyrocketed and suppliers began incurring huge losses.
The suppliers, however, are forced to sell at prices last increased during 2009-10.
"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," urged V.R. Ravindran of Amrut Distilleries.
Ninety 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.
Liquor sales in the state over the last fiscal crossed a record Rs.7,000 crore, and the revenue by way of taxes to the state was over Rs.6,000 crore.
"We are requesting for a 10 percent hike in supply prices, which will give the state government an additional revenue of Rs.600 crore. For the consumer it would mean a per bottle increase of just Rs.4 for a 750ml bottle, and Rs.5 for a 180ml bottle. The government will make additional Rs.28.56 on a bottle," said Benzigar Poovattil, general manager, Radico Khaitan Ltd.
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