Offer price controversy: Five breweries served show cause notice

Bhubaneswar: Controversy between Odisha government and liquor companies over reduction in offer price has refused to die down as the Excise commissioner today issued show-cause notices to five beer companies asking them that why their label registration would not be cancelled. The companies have been asked to reply by April 25.

This apart, the commissioner also wrote to the district excise officials to cancel the factory licenses of two beer producing units, United Breweries and SABMiller group, belonging to Odisha.

The companies who were served show cause are Carlsberg MP Beer production and Dewan Breweries along with United Breweries and SABMiller. These companies supply 70 per cent of beer sold in Odisha.

The Odisha State Beverages Corporation (OSBC) had approached the Excise commissioner for cancellation of factory licences and label registration of these companises for not signing agreement with it for supply of beer during 2015-16.

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.