Beer to Get Costlier by 15%! Manufacturers Seek Price Hike Amid Rising Production Costs

As India prepares for a scorching summer, beer lovers might have to shell out significantly more for their favorite chilled drink. Leading beer manufacturers have urged state governments to allow a price hike of 12% to 15%, citing a sharp rise in input and packaging costs.

Why the Price Hike? The primary reason behind this potential surge is the escalating cost of glass bottles and aluminum cans. Geopolitical tensions in West Asia have disrupted the supply chain of natural gas, which is essential for glass manufacturing. This has resulted in a nearly 20% spike in the price of glass bottles. Additionally, the costs of aluminum for cans and paper for packaging cartons have almost doubled. The Brewers Association of India (BAI) stated that the overall input cost has risen by 15%, making current operations unsustainable for many players.

Effective Date of Price Revision: The price revision is expected to align with the new financial year starting April 1, 2026. States like Uttar Pradesh and Odisha have already finalized their new excise policies, where a marginal increase is expected from the first week of April. In other states, manufacturers are individually approaching governments for mid-year price revisions. If approved, consumers can expect to pay ₹20 to ₹35 more per 650ml bottle by mid-April or early May. Industry experts warn that if the price hike is not granted, there could be a supply shortage during the peak summer demand as brewers might prioritize supplies to states with better margins.

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