Offer price war: AIBA terms Odisha govt move ‘unjust’

Odisha Sun Times Bureau
Bhubaneswar, Apr 24:

A day before the expiry of the deadline to respond to the show-cause notices issued against them, the All India Brewers’ Association (AIBA) today termed Odisha government’s move as “unjust and uncalled for.”

“The recommendation made by the Odisha State Beverages Corporation (OSBC) to the state government regarding cancellation of label registration of five brewing companies, is unjust and uncalled for,” a statement issued by the AIBA said.

The state government had issued show-cause notices to the breweries pertaining on the offer price of alcoholic beverages produced and sold in Odisha.

The association said the action by the government would result in a slump in revenue and business of the state.

It may be noted that OSBC, the state-run wholesale distributor of beer and Indian Made Foreign Liquor (IMFL) in the state, had urged the state government on Friday (Apr 17) to cancel the licenses of these five breweries which failed the sign the agreement for supply of beer for 2015-16 following which the latter had issued show-cause notices to the breweries threatening cancellation of label registration and license.

The state government has directed the companies to reply within April 25.

The breweries are Carlsberg, United Breweries Ltd, SABMiller India, MP Beer Products Ltd and Devans Breweries Ltd which between them control about 70 per cent of the beer trade in the state.

The corporation had also moved the state government for cancellation of factory licenses and label registration of breweries run by these five companies, which are opposed to the reduction in offer price of beer to the extent of 20 per cent as per the provision of the new excise policy of the state.

In the event of cancellation of license, the companies will not be allowed to produce alcoholic beverages in the state.