Hyderabad: Telangana’s liquor procurement pricing for the 2026‑27 excise year is under scrutiny, with industry and govt officials weighing the impact of rising costs against the risk of cross‑border smuggling.A key concern is that a steep price hike could widen the gap with neighbouring Andhra Pradesh, encouraging unauthorised liquor movement across the long interstate border.
Panel on liquor prices in Telangana
A three‑member price revision committee headed by retired high court judge Justice M Sunil Kishore Jaiswal is holding three days of consultations before finalising recommendations. The panel also includes Sunil Sharma, retired IAS officer and former special chief secretary, and Naveen Reddy, chartered accountant.Liquor companies have requested at least a 10 per cent increase in procurement prices, citing rising costs of raw materials, packaging, and transportation. Industry representatives presented data on input costs and market conditions during hearings on Wednesday.Cross‑border movementSources note that Telangana and Andhra Pradesh’s shared border has seen unauthorised liquor transport whenever price differences have widened. “If the same brand of liquor is available at a lower price, consumers will prefer it, and they will find a way to access it,” said the sources.Officials fear that higher procurement prices in Telangana could push consumers in border districts to buy liquor from Andhra Pradesh, where retail prices may remain lower. This could reduce excise revenue for Telangana while benefiting companies that view sales from a nationwide perspective.“Some companies may believe they are making more sales from Andhra Pradesh because they offer the same brand. However, some companies are worried that consumers may choose alternative brands that are available at lower prices than their own after the price increase,” the sources added.Balancing costs, revenueOne suggestion emerging from consultations is for the govt to reduce its profit margin to offset rising manufacturing costs, thereby limiting the retail price hike.The committee is expected to complete its deliberations within two days and submit recommendations to the govt. A final decision on procurement prices will be announced after June 15.
