Telangana Government Prepares to Hike Liquor Prices Again: Excise Department Proposals

Hyderabad: The Telangana government is reportedly preparing to increase liquor prices once again, barely two weeks after the last hike. According to excise department sources, proposals are underway to raise prices of popular liquor brands including brandy, whisky, rum, wine, and foreign scotch (IFML) by up to 10%. If implemented, the price of a quarter bottle could increase by ₹10 to ₹80 depending on the brand.

This would mark the third price hike within six months under the Revanth Reddy administration, following a 15% increase in beer prices in February and a special excise cess imposed on May 18.

Distilleries Demand Higher Base Prices Amid Rising Costs

Breweries had earlier raised their base prices, and distilleries and supply companies are now demanding similar hikes. Currently, TGBC Limited pays a base price, and distilleries are pushing for at least a 30% increase on that amount.

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To review pricing, the government appointed a five-member Price Fixation Committee led by former Justice Jaiswal. The committee reportedly recommended up to a 15% increase in basic prices for distilleries. However, the government has not agreed to this yet, stating the special excise cess introduced was meant solely to raise additional revenue to fund welfare schemes.

Political Pressure and the Possibility of Another Price Hike

Rumors suggest distilleries are lobbying government officials through an MLA from northern Telangana who is involved in liquor trade. Based on the Price Fixation Committee’s recommendations, the government is considering raising prices again, but possibly limiting the hike to 10% given the two previous increases this year.

If this move goes ahead, estimates suggest an additional ₹3,000 crore in annual revenue for the state government. However, excise officials warn that Telangana already has higher liquor prices compared to neighboring states, and further hikes may push consumers towards illegal or spurious alcohol.

New Liquor Supply Agreement to Take Effect From July 1

The current liquor supply agreement with companies expires on June 30, and a new contract will begin July 1. The government recently opened sealed bids from liquor supply companies, receiving proposals from 92 firms offering a total of 604 liquor brands.

Among these, 47 are new companies supplying 386 brands, while 45 existing companies submitted bids for 218 brands. Notably, new applicants include distilleries from Karnataka, Goa, Maharashtra, and around 20 local Hyderabad-registered firms.

What This Means for Consumers and the Market

The Telangana government’s decision on the price hike is expected soon, with files currently under review at the Chief Minister’s office. If prices rise again, consumers may face significantly higher costs for popular liquor brands. Meanwhile, excise officials urge caution, warning that steep increases could fuel demand for illegal alcohol, impacting public health and safety.