Liquor manufacturing companies have taken steps to increase the prices of all alcoholic beverages, effective from the 1st, in response to rising production costs.
According to the liquor manufacturers, the company that produces empty glass bottles has raised its charges, citing an increase in its own production costs. The new rates are 160 rupees for a 750ml bottle, 140 rupees for a 375ml (half-bottle), and 109 rupees for a 180ml (quarter-bottle).
Consequently, ‘wine stores’ (licensed liquor retail outlets) have increased the deposit amounts charged for these bottles which are among the highest-selling in the country. The deposit for a full bottle has been raised from 60 rupees to 100 rupees; the deposit for a half-bottle from 40 rupees to 70 rupees; and the deposit for a quarter-bottle from 20 rupees to 30 rupees. Companies state that they have factored in the additional costs incurred for purchasing bottles since these bottles are not returned into the price of the liquor itself.
Consequently, companies have raised the prices of liquor (for which bottles are not returned) to recover these costs from consumers.
Accordingly, the price of a 750ml bottle of ‘Gal Arrack’ has been increased to Rs. 3,800, which includes a Rs. 100 deposit for the bottle. The companies note that out of this amount, Rs. 360 goes to the liquor retail outlet, while approximately Rs. 611 is paid to the government as VAT.
The companies explain that even though excise duties have not been increased, the rising cost of procuring empty bottles leaves them with no alternative but to recover this expense from those purchasing the liquor.
Following the economic crisis of 2022, the prices of liquor in the country were increased by approximately 100 percent.