Impasse over offer price of beer continues

Bhubaneswar: The stalemate over the offer price of Beer in state continues as the discussions between the Excise commissioner and executives of Indian Made Foreign Liquor (IMFL) Association yielded no results.

According to sources, the association will submit a charter of demands to the high level committee constituted by the government. On the other hand the government also held discussions with the Beer manufacturers association yesterday.
Damodar Rout, Excise minister

Excise minister Damodar Rout told mediapersons, “Earlier, we had called the beverage companies for a meeting and asked them to sign the supply agreement. We also assured them to increase the offer price by 10 per cent to 12 per cent later but the companies asked for a written commitment. However, we will be unable to provide them a written confirmation as of now because it requires chief minster’s and cabinet’s approval.”

The Odisha State Beverages Corporation (OSBC) had moved the State government for cancellation of factory licences and label registration of five breweries for not signing agreement with it for supply of beer during 2015-16. The move followed after the companies failed to sign supply pact with OSBC, the state-run wholesale distributor of beer and
Indian Made Foreign Liquor (IMFL), on or before the scheduled date.

The leading liquor brands are opposing the reduction in offer price of beer to the extent of 20 per cent in the new excise policy of the State. The beer producers feel that the stiff cut in the offer price would result in business loss of over Rs 100 crore per annum.