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Pay more for liquor, Kerala government told

Kerala,Business/Economy, Tue, 17 Apr 2012 IANS

Thiruvananthapuram, April 17 (IANS) The Kerala Bottlers Federation (KBF) and the Association of Distillers, Brewers and Vintners of India Tuesday urged the Kerala government to raise the price of liquor purchased from them as input costs have risen.


'The cumulative inflation from 2007 has increased by 84 per cent for ENA, 95 per cent for glass bottles, 67 per cent in freight and yet the price increase given by KSBC is mere five percent. Kerala being a non-sugarcane growing state is a net importer of alcohol from other states like Maharashtra and Karnataka and here too the prices have jumped,' KBF president Vijaya Kumar told reporters here.



Extra neutral alcohol (ENA) is a raw material for production of liquor and beer. Its price has gone up due to a shortage in the country.



'Kerala State Beverages Corporation (KSBC) has not been giving us the required purchase price increase every year. The last time the price was increased was in 2009-10 by an average of five per cent, that too after a gap of four years,' Kumar said.



The demand comes at a time when liquor sales in the last fiscal is expected to cross an all time high of Rs.7,000 crore and the revenue to the state government by way of taxes is also expected to cross Rs.6,000 crore.



Kerala today has 708 bar hotels, 383 state-owned retail outlets.


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