Liquor price: State to build consensus
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The state government, which is under pressure to increase the basic price of liquor, has been working towards a consensus among the divided manufacturers. The officials of the state’s price negotiation committee are said to have been proposing to the distillers, who agreed to supply at the existing price, to resubmit their offer, incorporating the hike. The manufacturers were divided over the price hike, a section of them pressing for the hike in view of increased input cost, others cautioning the government that the recent efforts to make liquor available to consumers at low rates would get nullified.
“The government, with great difficulty, instilled fear among retailers on MRP violations, and now, customers are getting liquor at a lower price,” a distiller said. If the cheap liquor is sold at Rs 60 because of strict enforcement of MRP, it will go up to Rs 70 if the government enhances the price, he added. Sources told this newspaper that the top brass of the administration was convinced about the need to enhance the basic price by 15 per cent which will result in an additional burden of Rs 3,000 crore on consumers.
While manufacturers would get Rs 600 crore of the increased revenue, the rest would be pocketed by the government either in the form of excise duty or VAT. The officials concerned have been advocating a price hike to compensate the loss of revenue due to fixing of a low license fee and more than 750 shops remaining un-allotted. Any hike will be above the 12.5 per cent additional trade margin levied on premium liquor from July 1, sources added.
The government is under pressure to enhance the basic price of Rs 400 and below to Rs 460 and Rs 400-Rs 450 by Rs 70. In the case of beer manufacturers sought an increase of Rs 40 per case and in the middle- and high-end segments, the price rise proposed per case is Rs 100 to Rs 300.
“Increase in the basic price is required because of rise in input costs,” said a distiller.
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