E-Malt.com News article: India: Excise Department of the Union Territory of Chandigarh is not in favour of increasing beer rates

Even if the Administration of the Union Territory of Chandigarh (UT) had earlier assured beer manufacturers that the beer rates would be hiked by June 15, sources said officials of the UT Excise Department were not in favour of increasing the rates, Chandigarh Newsline posted June 20.

There is a strong likelihood that the Administration would not revise the beer rates as only some companies had demanded a revision, added these sources. Moreover, the ‘‘beer season’’ is almost over and there is no shortage at the city’s liquor vends.

At present, manufacturers charge Rs 200 per case (12 bottles). They have been demanding an increase to Rs 300 per case. The issue cropped up about two weeks back, after some manufacturers, including Mount Shivalik Breweries, Millennium Industries Ltd, Devans Breweries Ltd and Rochees Breweries Ltd, created a shortage of beer in the city by cutting down on their supply. This led to an increase in rates.

The Administration then suspended the wholesale beer licenses of companies including Millennium, Rochees and Devans, which manufacture Kingfisher, Haywards 5000, Royal Challenge, Castle and Godfather brands of beer, for not maintaining the normal beer supply. The supply was later restored after the UT assured the companies that the beer rates would be revised.

UT officials alleged that these three companies, along with Shivalik Breweries Ltd, had formed a cartel and had almost stopped beer supply to the city. Officials said it was a deliberate attempt to hike the beer rates. They added that the supply of other brands like Golden Eagle and Foster’s was normal, with their manufacturers not demanding any price hike.

The beer rates in the city have come down by almost 50 per cent since April, after the implementation of the new excise policy.


23 June, 2006