Liquor prices to go up by 20 per cent

Tipplers may have to shell out extra pennies as molasses have become costlier by 75 per cent in the past one year.

"Prices of low-end brands in India Made Foreign Liquor (IMFL) segment may go up by 15-20 per cent in the next couple of months," liquor retailing major Chadha Group CEO Raju Chadha told PTI.

According to All India Distilleries Association (AIDA), molasses prices have increased to Rs 6,500-7,000 per quintal which is about 75 per cent higher than the prevailing price last April.

The total IMFL market in India is estimated at around 190 million cases per annum and the molasses-based liquor accounts more than 90 per cent of it.

Another major player in the liquor industry, Radico Khaitan, said it is also looking at upward revision in the prices of some of its brands.

"Molasses based alcohol accounts for over 90 per cent of the total liquor consumed in the country. We will have to revise the prices of our low end brands of IMFL, to offset the increase in the price of raw materials," Radico Khaitan COO Raju Vaziraney said.

Meanwhile, UB Group promoted United Spirits, the largest liquor manufacturer in the country, was not available for comment.