HYDERABAD: Confusion reigned supreme on Thursday at liquor stores as the new prices came into effect. Several liquor shop owners struggled with price confusion and panchanama (verification of records and stock) of existing liquor stock, as trade watchers said sales are likely to return to normal after 2-3 days due to billing delays.
While the excise department issued orders for the third time revising the liquor prices — post-formation of the state — on Thursday, owners of liquor stores have been instructed to complete the liquor stock evaluation in the presence of excise officials. Telangana has 2,620 licensed liquor stores and 1,100 clubs and bars. With the increase in prices, the monthly income is set to touch 180 crore.
According to industry insiders, the sudden rise in prices will result in MRP violations. The new prices will make scotch the most expensive, with an increase of 200 per bottle. While many foreign beer brands are available in the market, the most expensive beer will cost 30,000.
The existing stock has old price labels and the outlets have been asked to sell it at new prices. “Liquor shop owners typically lift stock by paying fixed prices, but now they are asked to pay the fees with increased prices for existing stock and sell it at the increased price. They are confused about the price list sent to them directly and the price list displayed on the department’s website,” liquor trade sources said.
Shop owners have been given time until May 31 to pay the fees with the new price for available existing stock. “We have already sent the stock with old price labels. We are now forced to spend more due to this sudden change in price regime,” said a winery owner.
The first time liquor prices were revised was in December 2019 with a 20% increase. After the lockdown, the prices were jacked up again in May 2020. However, the state government did not reduce the cess levied at the time and instead kept it in place.
According to industry sources, some owners in border districts may lose out business to neighbouring Andhra Pradesh due to lower rates there. “People from AP border areas used to buy liquor from Telangana when AP raised the prices. The situation has now been reversed,” a source said.
Meanwhile, the excise department has issued a warning to retailers saying that those who violate the MRP will face severe consequences. Customers can file a complaint with the department, it said.
