Govt woos local beer suppliers to make up short supply

Three major beer companies - SABMiller India, United Breweries Limited and Carlsberg enjoy more than 80% of the market share

With major national liquor brands stopping supply of beer to the Odisha market in protest against the new excise policy that asks them to reduce the offer prices of the drink by 20 per cent, the state government has approached the local breweries to meet the short supply in the market.

"The major players seem to be hell-bent on their decisions not to sign agreements with state-owned Odisha State Beverages Corporation, the sole wholesale distributor of beer and Indian Made Foreign Liquor (IMFL) in the state, opposing the cut in offer prices in the new excise policy. Officials of these liquor companies are not coming to the table for discussion. Meanwhile, we have approached the small local players like SR Breweries having manufacturing facility at Tangi , Cuttack and Maikal Breweries at Bolangir to increase their production and makeup the supply gap," said a OSBC official.

Three major beer companies - SABMiller India, United Breweries Limited and Carlsberg enjoy more than 80 per cent of the market share.

As many as ten breweries supply the alcoholic drink to OSBC. About six companies have not renewed agreements with the state-owned wholesaler owing to reduction of offer prices fixed for the new fiscal. They fear that the stiff cut in the offer price would result in business loss to the tune of over Rs 100 crore per annum.

However, the IMFL companies have agreed to supply their products despite a cut of 10 per cent in the offer price imposed on them

"At present there is no crisis pertaining to the IMFL. The issue of IMFL have been resolved to some extent after the liquor companies were assured that their grievances will be looked into and examined by a high level committee formed for the purpose. On this basis, IMFL manufacturers are ready to resume supply from tomorrow," added the official.

IMFL manufacturers are also opposing the 10 per cent reduction in offer prices in the new policy.

Last year, about 37 companies, including nine beer suppliers, entered into agreement with the OSBC for supply of the alcoholic drinks.

The state government has constituted a panel headed by secretary of Excise department to look into the grievances of liquor manufacturers. The other members of the committee included excise commissioner, special secretary, finance department and commercial tax commissioner.