Bear it with a grin, even beer becomes dearer

PUDUCHERRY: There is trouble in the tipplers’ paradise. The price of beer in the Union Territory which includes both imported beer (manufactured in other states) as well as beer produced locally has shot up with an average increase of Rs 3 per bottle and Rs 36 per case (dozen bottles), with wholesale price registering an increase of Rs 2.66 per bottle and Rs 32 per case.Increase in the cost of raw materials and transportation (diesel) have had a cascading effect on the price of beer, said D P Ramamurthy, a wholesale beer trader. Apparently, beer prices had not been revised for the last two years despite a hike in diesel price. Tamil Nadu, he argued, had increased the diesel price twice in the past two years. Another reason behind the increase was on account of procuring certain brands of beer like Kingfisher, Kingfisher Strong, Kingfisher Blue, Kalyani, etc from Daman, Goa, Bangalore and West Bengal. Since the manufacturers delivered the consignment right at the doorstep and as they would have to bear the burden of the increased diesel price, the beer price was enhanced. In fact, after discussion with the manufacturers, a hike in beer price was to have been carried out by the excise department in March last. However, due to the Assembly elections, it was kept pending. After getting the go ahead last month, the increase has come about.Not only imported beer, even brands produced locally have increased their price. Certain brands like Budweiser, however, have not jacked up their prices, as they had the benefit of business foresight. Since it had entered the market only nine months ago in Puducherry, the increase had already been factored in after reading the scenario correctly.All said, traders are looking to reap a good business with summer being the peak season for beer. Also, the beer market in Puducherry is patronised by both tourists as well as locals with an average sale of  20 lakh dozen annually. Despite the increase in prices, business will not see a slump as the rate remains cheaper as compared to the neighbouring states. It is cheaper by Rs 12 to Rs 15 to a bottle, said Ramamurthy.Even the cash-strapped government can expect to get some extra revenue without raising excise duty.  The additional revenue generated would be known after a month’s sale.