Citizens are irked as the state government has decided to increase the maximum retail price (MRP) of beer in Mumbai and other parts of Maharashtra. Due to this hike, beer will be sold at the highest rate in Maharashtra as compared to all others Indian states. This hike may reduce beer sales, lead to losses and compel consumers to opt for hard liquor which is comparatively cheap.
A 650 ml bottle of mild beer which costs Rs 140 is likely to cost Rs 165 while strong beer which costs Rs 145 will cost Rs 175. These rates will further shoot up at bars, permit rooms, pubs and clubs as these places charge more than the MRP available at retail outlets and wine shops. In October the government had increased the excise duty and now they have hiked the MRP.
The retailers mentioned this price hike will lead to huge losses and disrupt their entire business with a direct effect on the consumer. Dilip Giyanani, Chairman of Maharashtra Wine Owner’s Association, said, “The price hike will affect us directly as both MRP and excise duty as compared to manufacturing cost has been increased. It will reduce beer sales drastically as people will not buy it. Instead customers will prefer to buy a bottle of hard liquor which is economical.”
In addition, this price hike will discourage people from drinking at hotels and bars and disrupt law and order situation. “Beer will cost more in permit rooms and people will now start drinking on the road because they will not pay high-end prices in a bar. This will further aggravate the scenario which we currently face and will affect law and order situation,” Giyanani added.
Beer is considered to be a family drink which people of all age groups consume during a celebration as per hoteliers. Uday Shetty, a bar owner said, “We often get families who come together for an outing for dinner and a beer. How can a middle class citizens afford such high-end prices even once a month? This hike will adversely affect our industry and we are going to lose customers.”
Local beer consumers claimed this price is not fair as a hike in MRP affects the consumers directly. Anson D’souza, a working youth said, “If we have to pay more for beer we would rather opt for a hard drink and this price hike will force us to do so. Beer is cheap at other places like Delhi and Bangalore then why is it the costliest in Mumbai?” While, Kiran Naik, a youth said, “We go to pubs and clubs just to drink beer and chill with friends. But if the drink itself is expensive then we will shift to drinking on the road as we cannot afford it. Does the government really want more people to drink on the road? Or rather does the government want more people to drink hard liquor instead of a mild beer?”
This hike has come due to discussions between the state government and manufacturers of beer. But it will directly affect consumers, retailers, bar owners and hoteliers. “We have not been clearly informed about the new charges yet. But we are against this price hike. The supply of Beer is going on as usual as of now,” Shetty added. This hike may be functional in the next four to five days or in the new year.
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