The recent increase in liquor prices in Kerala is unlikely to bring significant revenue gains for the state government. The decision to raise prices was driven by liquor manufacturers, who cited rising costs of raw materials, including ethanol. Most of the additional revenue from the hike will now benefit the manufacturers rather than the government.
The new prices came into effect yesterday, with the Kerala State Beverages Corporation (BEVCO) releasing an updated list. The hike ranges between Rs 10 and Rs 50 depending on the brand. Liquor priced under Rs 999 is now Rs 20 more expensive, while those above Rs 1,000 have seen a Rs 40 increase. The popular Jawan Rum now costs Rs 650, up from Rs 640. Beer prices have gone up by Rs 20, while premium brandies have seen a jump of up to Rs 130. The cost of Indian-made foreign liquor, beer, and wine has also increased.
Kerala is already one of the states with the highest taxes on liquor. For example, one of the most sold brands, priced at Rs 193.73, carries a tax of Rs 486.27, making the final price Rs 700. Liquor prices are decided based on an agreement between Bevco and liquor companies, who frequently ask for price hikes. However, the government doesn't always agree.
The price hike has triggered criticism from the opposition. Opposition leader V.D. Satheesan alleged that the increase mainly benefits liquor companies, particularly Oasis Company, which recently got secret approval to set up a liquor manufacturing unit in the state. He questioned the government’s decision, calling it suspicious that the price hike followed the company's approval. The leader also pointed out how United Breweries recently stopped selling its beer brands in Telangana after that state’s government refused to increase prices.
