Hyderabad: Excise minister Jupally Krishna Rao said the govt will not yield to the “monopolistic” pressure tactics employed by United Breweries Ltd (UB), despite the price increase issue is under the price revision committee‘s scrutiny.
At a press conference following UB’s announcement to halt beer supply to the Telangana State Beverages Corporation, the minister remarked that the company had requested a 33% price hike through its representatives, which would significantly burden beer consumers.
He pointed out that beer prices in Telangana are lower than those in neighbouring states such as Andhra Pradesh, Karnataka, Tamil Nadu, and Maharashtra. A committee, including a retired high court judge, has been appointed to review the price hike request, he said and observed that the former BRS govt has not increased beer prices in the past four to five years.
He accused UB of exploiting its dominant 70% market share, claiming that the company is aware that the price revision is under examination but has decided to proceed with its actions anyway. He affirmed that the govt would make decisions that would not unduly burden beer consumers, contrary to the company’s expectations.
He also noted that UB only sent a letter on Wednesday, indicating its intention to stop supply starting Thursday, and emphasised that there had been no tax increase for the company.
Regarding the outstanding dues owed to UB, he said that since the Congress govt took office, it has paid 1,130 crore, while UB still has 658 crore pending. Of this, 407 crore has been outstanding since the previous BRS govt’s tenure. He explained that the govt has established a 45-day payment cycle, and the company has acknowledged receipt of payments in its communications.
In response to allegations from former finance minister T Harish Rao that the Congress govt is promoting new and hyper-local brands, he clarified that no permissions have been granted to any new companies.
