In a surprising twist, United Breweries Limited (UBL), known for its iconic Kingfisher beer, has halted its supply to Telangana. The decision came after the Telangana Beverages Corporation Limited (TGBCL) failed to clear dues of Rs 658.95 crore. UBL also demanded a 33% hike in beer prices, which the state government refused outright.
Excise Minister Jupally Krishna Rao addressed the media late Wednesday, making it clear that the government would not bow to pressure. He said increasing beer prices would directly hit consumers’ pockets. “A bottle priced at Rs 150 could jump to Rs 250 if we agree to their demands. That’s not acceptable,” he stated firmly.
The minister also pointed out UBL’s dominant position in the state’s beer market. With a 69% market share, the company holds significant sway. However, Rao emphasized that the government would not allow this to dictate decisions. He accused UBL of using its monopoly to force a price hike. “We won’t let them burden the people,” he added.
Bills, Pending Payments, and Brewing Tensions
UBL claims mounting losses due to unpaid bills, but the government sees things differently. According to Rao, Telangana’s Excise department has already cleared Rs 1,130.99 crore in dues owed to UBL. However, he acknowledged that Rs 658.95 crore remains unpaid. “This isn’t just about UBL. The state has inherited Rs 40,000 crore in pending bills from the previous regime. The Excise department alone has dues of Rs 2,500 crore,” he explained.
The current Congress government, which recently came to power, has been trying to clear these dues step by step. Rao assured that they are prioritizing essential payments but won’t allow companies to arm-twist them into unreasonable deals.
The Consumer’s Side of the Story
If UBL’s demand is met, beer prices in Telangana could skyrocket. A bottle that now costs Rs 150 would go up to Rs 250. For regular consumers, this would be a significant hike. “We understand businesses face challenges, but it’s our responsibility to protect the public from unnecessary price increases,” said Excise & Prohibition Director Chevvuru Hari Kiran.
He further assured that the government is exploring alternatives to ensure beer supply is not disrupted. Local breweries and other brands might step in to fill the gap if UBL maintains its stance.
UBL’s Monopoly Under Scrutiny
While UBL’s Kingfisher dominates the market, this situation has sparked debates about monopolies in the liquor industry. Several industry experts believe that such dominance allows companies to dictate terms unfairly. “It’s time we rethink how the liquor market operates in Telangana,” said a local industry observer.
The government seems to agree. “We’re working on plans to diversify suppliers and bring in more competition. That will not only keep prices stable but also ensure uninterrupted supply,” said an official from the Excise department.
What Happens Next?
For now, the stand-off continues. UBL has stopped supplies, and Telangana is firm on its no-hike policy. The big question is how long this stalemate will last and who will blink first. Meanwhile, beer lovers in the state may face shortages in the coming weeks.
As the battle brews, one thing is clear—this is more than just a fight over prices. It’s a test of who holds the power in Telangana’s liquor market. Stay tuned as this story unfolds.
