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Cuttack, May 6: The Orissa High Court Wednesday postponed the hearing on a case filed by five major beer manufacturing companies challenging the government’s new excise policy seeking to reduce the offer price of beer by 20 per cent, to May 12.
While the state excise department is willing to reduce the offer price to 10 per cent instead of 20 per cent it had sought in accordance with the 2015-16 Excise policy, the dispute remains unresolved as beer makers have demanded it in writing.
“We offered to reduce the offer price from 20 per cent to 10 per cent. But they want it in writing, which we cannot give. We will make alternate arrangements after going through the High Court’s decision at tomorrow’s hearing. If required, some changes will be made,” excise minister Damodar Rout had said Tuesday.
While the deadlock between the state government and beer manufacturers continues, acute shortage of the beverage in the market has deprived tipplers of their favourite brew this summer.
The Orissa State Beverages Corporation (OSBC), the state-run wholesale distributor of beer and Indian Made Foreign Liquor (IMFL) in the state, has failed to supply even 19 pc of the cases supplied to retailers in April last year.
According to available information, OSBC had supplied 12.49 lakh cases of beer to licensed retailers in the state during April last year. During the same period this year, OSBC has been able to supply only 2.35 lakh cases. Similarly, the corporation did a meagre business of Rs 11.93 crore compared to Rs 37.41 crore during April last year.
Meanwhile, licensed liquor retailers of the state, who met the OSBC managing director Monday, told him that while the corporation is unable to meet the supply, they have to pay the license fee. Demanding that OSBC should compensate them for their losses, they said they would have no option but to shut down their outlets if supplies are not normalised soon.
The new excise policy provides for procurement of top beer brands for 20 per cent less. Opposing the new excise policy of the state government, five major beer manufacturing companies – SABMiller India, Carlsberg India, United Breweries (UB), MP Beer Products and Devans Breweries – have stopped supplies to the OSBC and have not entered into an agreement with it for supplying beer. The five manufacturers who refused to sign the agreement, control 80 per cent of the beer market in the state. Offer price is the rate at which they supply the beverage to OSBC.
