Source : DNA INDIA NEWS
Heineken’s United Breweries has claimed that the government of Telangana has held back its payments and did not approve higher prices since fiscal year 2019-2020.
Telangana might soon see a shortage of liquor after Heineken stopped its supplies to the state this week. Other liquor companies have demanded USD 466 million or Rs 4,003,377,95,61 as unpaid dues from the government.
The state government is facing complaints of unpaid dues from various liquor companies including Heineken’s United Breweries. Heineken’s United Breweries has claimed that the government of Telangana has held back its payments and did not approve higher prices since fiscal year 2019-2020. This, it said, impacted its finances.
The largest beer firm in India, United Breweries, had a 7% decline in its stock on Wednesday after the company took the historic decision to halt deliveries to the southern state. It controls 70% of the state’s market.
Jupally Krishna Rao, Telangana’s Minister for Tourism and Culture, said that United Breweries stopped supplies as part of its “tactic” to force price increases which affected consumer demand. He further said that despite owing USD 77 million to United Breweries it provided reasons for payment delays.
According to Reuters, Telangana has a debt of USD 5 million to Carlsberg and USD 17 million to AB InBev. The government’s debt to Whisky and Scotch brewers is much more. World’s second largest wine and spirit seller, Pernod Ricard has demanded USD 175 million, and Diageo demanded USD 116.40 million in unpaid dues.
The International Spirits and Wines Association of India and the Brewers’ Association of India wrote to the Telangana government to voice their concerns about the payment delays, claiming that they were “creating tremendous difficulties for companies.” The Reuters article, which cited the October 3 letter, stated that operations and efforts to sustain and plan investments were the sectors most severely affected.
SOURCE : DNA NEW
