Committee constituted to resolve beer pricing issue

Bhubaneswar: To resolve the ongoing tussle between the government and the alcohol companies pertaining to offer price, the government has constituted a high-level committee. Keeping in mind the demands of the consumers and the provisions of the new excise policy and based on the report given by the committee decision will be taken in this regard, informed Excise minister Damodar Rout.

The excise revenue is apprehended to take a hit this year after the State government reduced the offer price as per the new excise policy.

According to the new policy, offer price from the beer companies has been reduced by 20 per cent while it is 10 per cent in the field of India-made foreign liquor. Similarly, offer price from the retail traders has been reduced from 25 to 18 per cent. Such a move has forced the brewers to keep away from signing pact with the State beverage corporation to supply wine this year.

But this has prompted the government to cancel licences of the liquor units. According to sources, the government had earned Rs 2,000 crore revenue from alcoholic beverages last year while it aimed at increasing the rate of revenue to Rs 500 crore this year.