Liquor Prices Set to Rise from May

According to multiple reports, the hike is likely to range between 12-15 percent

Rs 20-30 Increase could be seen in 180ml quarter bottle of IMFL 

Beer demand typically spikes by 

30% in summer

metro india news  I hyderabad

Liquor consumers in Telangana are bracing for a significant price increase as the state government gears up to revise rates for Indian Made Foreign Liquor (IMFL), country liquor, and beer effective from May. According to multiple reports, the hike is likely to range between 12-15 percent, following a formal review by the Excise Department and a judicial committee. Distilleries and manufacturers have been pressing for the revision due to escalating production costs and supply chain bottlenecks. 

The decision comes against the backdrop of global geopolitical tensions, particularly conflicts in West Asia, which have disrupted the supply of key raw materials and glass bottles. Industry sources indicate that the cost of bottles and packaging has surged, while natural gas shortages have further strained manufacturing. Beer demand, which typically spikes by 30 percent during summer months, is adding pressure amid existing shortages. The last major revision in some categories occurred in May 2025, making the current review overdue. 

A three-member committee comprising a retired judge, a senior IAS officer, and a chartered accountant has been examining the proposals. The government is expected to take a final call based on the committee’s recommendations, with revised Maximum Retail Prices (MRP) potentially rolling out as early as next month. Officials from the Telangana Beverages Corporation Limited (TGBCL) and the Prohibition & Excise Department have already initiated consultations with stakeholders. 

For consumers, the impact will be noticeable across segments. A standard 180ml quarter bottle of IMFL could see an increase of Rs 20-30 or more, while half bottles (360-375ml) and full 750ml bottles might rise by Rs 40-60 and Rs 80-100 respectively, depending on the brand. Premium whiskies, vodkas, and rums are expected to witness sharper hikes. Beer prices, already adjusted in February by around 15 percent in some cases, could climb further by Rs 10-20 per bottle. Country liquor, popular in rural areas, will also not be spared, with minimum increases anticipated. 

The hike aims to balance manufacturer concerns over thin margins with the state’s revenue goals. Telangana earns substantial excise revenue from liquor sales—estimated in thousands of crores annually—which funds various welfare schemes. However, the move is likely to draw criticism from consumers and opposition parties, who may term it a burden on the common man amid inflation.

Hospitality and bar owners in Hyderabad and other cities are already worried. Establishments that rely heavily on liquor sales fear reduced footfall as customers opt for cheaper alternatives or cut down consumption. “Input costs have gone up by 20-25 percent in the last year. Without a price correction, many distilleries will struggle,” said an industry representative on condition of anonymity.

This anticipated revision aligns with trends in neighboring states where similar cost pressures have led to periodic hikes. The government has maintained that any increase will be moderate and based on a scientific assessment rather than arbitrary decisions.

As summer approaches and temperatures soar, beer sales are expected to surge, potentially exacerbating shortages if the hike is delayed. Consumers are advised to check official notifications from the Excise Department closer to May for exact new rates.

The development underscores the vulnerability of the alcohol industry to global events, from wars affecting supply lines to domestic demand fluctuations.