The consecutive assembly and Lok Sabha elections in Telangana, and the change in government late last year, gave rise to an unexpected side effect: scarcity of beer.
While supply dwindles for a couple of weeks due to high demand every summer, there has been a sustained scarcity of beer for a month now.
Ranjith Dodda, who owns a pub called By The Bottle in Jubilee Hills, told News18: “In the previous years, we have seen a shortage in the supply of beer cases for a maximum of 2-3 days, but now, we are struggling to meet the demand of the customers for the last 45 days. Around a fortnight ago, there was a shortage of 330 ml pint beers, now we are not getting 650 ml also. Even if we get it, the retailers are rationing eight or nine cases. We usually keep 100 cases for three days, but the number has come down to single digits now.”
Satyajith, a software engineer from Hyderabad shares that he has been unable to find his favourite brands of beer for over a month. “Kingfisher and Budweiser are no longer available in the city. Even posh liquor marts like Tonique are stocking obscure German brands. They are 2-3 times more expensive and taste like wine. Premium beer like Corona is available in the local wine shops,” he said.
There are 19 companies in Telangana that manufacture liquor. Out of these, six brew beer. Every month, 50 lakh beer cases are produced in these breweries. The state supplies the raw materials to these companies. The liquor is then distributed among retailers by The Telangana State Beverages Corporation Limited.
Whenever there is any scarcity in production, the corporation is also known to buy beer from other states. There are 2,620 retailers in the state and liquor is distributed through 19 depots.
When asked about the reasons behind the shortage, an official from the excise and prohibition department told News18: “One of the reasons behind the shortage is that many retailers sell the liquor to unlicensed (belt) shops at a higher price. Sometimes, depots do this to clear inventory. Kingfisher and Budweiser light beers are in high demand because they are popular among women and teenagers. Till April last year, 42 lakh cases of beer were sold, and till May 23 this year, we have crossed 52 lakh cases. So, manufacturers are finding it difficult to cater to the high demand.”
However, sources told News18 that the main reason behind the scarcity is that the government has not paid its dues to the liquor manufacturing companies. “The companies have to be paid every 45 days. The officials have been unable to do this due to the ongoing Lok Sabha elections. This has also given a chance to the companies to create an artificial shortage in the market so that the government can be pressured to pay them. Besides this, political parties like to treat participants in rallies to chilled beer in this scorching heat. That is why, beer cases are disappearing faster in the shops,” said a source.
Echoing this, D Venkateshwara Rao, president of the Telangana Wine Shop Dealers Association, said: “Every year, beer sales increase during summer, and arrangements are made to cater to the demand quickly. However, due to the Model Code of Conduct during elections, the manufacturers are not able to supply the required quantities. There are rumours floating around that the government owes money to these companies. The government machinery has changed after the assembly elections and hence we are witnessing delays. Even if the government says that it’s providing sufficient stocks, they are not giving the retailers the fast-moving brands. There is no use in having many cases of the slow-moving ones.”
After coming to power last December, chief minister Revanth Reddy sacked the chairmen of 54 corporations in Telangana. Gajjela Nagesh of Telangana State Beverages Development Corporation Limited is one of them. No one was appointed to that post after him.
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