Thiruvananthapuram: Liquor prices in Kerala are likely to go up soon. The new liquor policy envisages higher prices as demanded by manufacturers and recommends use of glass bottles instead of the cheaper plastic ones which are currently used. Moreover, the increase in blending fee by distilleries in the State too will make the spirits costly.
The policy clearly says that liquor should not be distributed in plastic bottles from the fiscal year 2023-24. As of now 60 percent liquor is sold in plastic bottles. The liquor companies are reluctant to return to glass bottles because of the non-availability of such bottles and additional expenses involved.
However, the Confederation of Indian Alcoholic Beverage Companies, the leading organisation of liquor manufacturers, has welcomed the decision to move over to glass bottles. It demanded the availability of glass bottles at reasonable prices.
The office-bearers of the confederation said the government has also been requested to revise the liquor prices taking into account the hike in wage of labourers and spirit.
Hike in distillery fee
Most of the high-sale brands sold in Kerala are manufactured in distilleries and blending units within the State itself.
Liquor companies which are based outside Kerala have to pay fees to get the blending done in distilleries within the State. In line with the new liquor policy the government has taken a decision to increase this fees from Rs 2 lakh to Rs 5 lakh.
Brand registration fee too increased
Besides, the annual brand registration fee of liquor manufactured in this manner has also been increased from Rs 3 lakh to Rs 4 lakh. The fee for Kerala distilleries for registering their own brands has also been increased from Rs 75,000 to Rs 1 lakh. However, the hike is not applicable if the liquor is sold in glass bottles.
The increase of Rs 4 per litre in excise duty for liquor sold through military and paramilitary canteens will also strain liquor companies.
The price of liquor will certainly go up if the State government accepts the demand of liquor companies to increase the prices in consonance with the hikes proposed in the new policy.
No change in dry day
The first day of every month will continue to remain a “dry day” as per the new liquor policy which was given the nod by the Council of Ministers of the Kerala Government on Wednesday.
