HC defers hearing of case on beer offer price

United Breweries, SAB Miller India and Carlsberg India Pvt Ltd have declined to sign the annual agreement with the OSBC

The Odisha High Court today deferred the hearing on a case challenging the move of the Odisha government to cut the offer price of beer suppliers by 20 per cent as proposed in its excise policy for 2015. The hearing of the case is rescheduled to May 12.

The advocate general said the court that state government is reconsidering its decision to cut the offer price of breweries by 20 per cent. The matter will be taken up for hearing on Tuesday, said Manoj Kumar Mishra, petitioner for SABMiller India Ltd and United Breweries Ltd.

Today, the matter was listed for hearing in the division bench comprising Justice Indrajit Mohanty and Justice Biswanath Rath. United Breweries, SABMiller India, Carlsberg India Pvt Ltd and Fortune Spirit had challenged the stiff reduction in offer price in the court. Of them, United Breweries, SAB Miller India and Carlsberg India Pvt Ltd have declined to sign the annual agreement with the Odisha State Beverages Corporation (OSBC), the sole wholesale distributor of alcoholic beverages in the state.

The stalemate over the fixation of offer price has led to acute shortage of beer in the state and reduction in excise duty collection. State excise minister Damodar Rout on Tuesday had hinted at revising the cut in offer price from 20 per cent to 10 per cent, but the deadlock continued as the beer manufacturers have sought a written assurance from the state government. OSBC was able to supply only 2.35 lakh cases in April this year to the licensed retailers against the demand of 12.49 lakh cases of beer.