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Last Updated : May 18, 2018 06:25 PM IST | Source: Moneycontrol.com

Maharashtra beer sales drop due to steep rise in its prices

Maharashtra’s beer consumption has dropped year-on-year as well. In 2016-17, 32.48 crore litres of beer were consumed by people, which dropped to 27.59 crore litres in the financial year 2017-18

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Beer consumption dropped in Maharashtra by 6 percent in March and April this year, going from 6.29 crore litres in 2017 to 5.91 crore litres during the same period in 2018. Mumbai Mirror reported that the main reason for this decline was the sharp increase in prices, according to an official in the state excise department.

Maharashtra’s beer consumption has dropped year-on-year as well. In 2016-17, 32.48 crore litres of beer were consumed by people, which dropped to 27.59 crore litres in the financial year 2017-18.

However, Indian Made Foreign Liquor (IMFL) is doing very well for the past two years. In April 2017, the state consumed 1.49 crore litres of IMFL, which was found to be 1.61 crore litres in April this year.

The state government hiked excise duty on beer by 17 percent in October 2017, but manufacturers were not allowed to increase retail prices. As a result of this, there was a shortage of beer in the market since manufacturers cut back on supplies.

This issue was resolved after the government agreed to increase a maximum retail price of beer from 3.50 times of manufacturing cost to 3.75 times in case of mild beer and 4.60 times from 4.25 times in case of strong beers.

Per bottle, the price went up by Rs 10 to Rs 15. A bottle of Kingfisher Premium now costs Rs 155 and strong costs Rs 160.

The impact of the hike in price has had many other major consequences, according to Dilip Giranani, chairman of Maharashtra Wine Shop Owners Association.

“On an average across all segments, beer sales have dropped by 15 to 20 percent. In the premium segment, the drop has been the steepest at 35 percent, followed by 20 percent in the regular segment. In the segment, the sales have dropped by 12 percent,” he said.

Maharashtra government’s revenue from the sale of all liquor (including country liquor) was Rs 12,288 crore in 2016-17, and Rs 13,448 crore in 2017-18, an increase of 9.4 percent.
First Published on May 18, 2018 02:03 pm
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