Shortage of inexpensive liquor blessing in disguise for Bevco

A shortage of inexpensive liquor brands in Bevco outlets is emptying customers’ pockets.
Representational image. (File photo| A Sanesh/EPS)
Representational image. (File photo| A Sanesh/EPS)

THIRUVANANTHAPURAM: A shortage of inexpensive liquor brands in Bevco outlets is emptying customers’ pockets. For the liquor manufacturers have reduced supply as the government is yet to take a call on their request to increase procurement price, a source with the corporation told TNIE. Suppliers demanded a hike citing the increase in production cost. In their representations to Bevco, the manufacturers pointed out that the procurement price has not been revised in the past four years. The price of Extra Neutral Alcohol (ENA) has seen an increase of over 25% this year alone. Labour cost and fuel price too have gone up. The manufacturers have cold-shouldered two notices served by the corporation to restore normal supply. Now, the corporation has asked the government to take a decision on the suppliers’ demand, said the source.

The shortage, however, had a positive impact on Bevco’s revenue. This April, the revenue stood at `404 crore more than the figure for last April, and also higher than the previous month’s collection. The increase in sales volume was about nine lakh cases. In a bid to give some relief to the customers, Bevco has made available more beer brands in its outlets. The idea is to give an alternative to customers who do not want to buy costly liquor brands. The shortage is for brands priced up to about `700, according to Bevco.

The corporation too has suffered from the price rise of ENA as the production cost for its brand — Jawan Deluxe XXX Rum — has gone up. Expansion is in progress at the Tiruvalla-based Travancore Sugars and Chemicals, where the rum is manufactured. The plan is to set up six additional production lines there. It is expected to increase daily production from an average of 7,000 cases to the 10,000-12,000 range. Meanwhile, the excise department has asked enforcement officers to keep vigil over a possible spike in the production of spurious liquor.

SALES JUMP
This April, the revenue stood at J404 crore more than the figure for last April, and also higher than the previous month’s collection. The increase in sales volume was about nine lakh cases.

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