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Supply crisis: West Bengal to ration beer

The state is virtually running out of beer after a big manufacturing unit at Kalyani in Nadia district suspended production around two months ago owing to low profit margin, said an official

Supply crisis: West Bengal to ration beer

(PHOTO: Getty Images)

Considering the severe crisis in supply of beer across Bengal, the state government is planning to launch a rationing system to maintain a uniform sale of beer with the onset of summer.

According to sources in the state excise department, the distribution will be made through first-come-first-chance through online booking. Maximum 100 cases of beer may be given from the West Bengal State Beverage Corporation to each licensed bar or restaurant or local liquor shop owner.

The state government has put itself in a controlling position by entering into the liquor distribution business by forming the corporation . The state is virtually running out of beer after a big manufacturing unit at Kalyani in Nadia district suspended production around two months ago owing to low profit margin, an official of the excise department said requesting anonymity.

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With the formation of the corporation the unit that supplies more than 75 per cent of beer in licensed hotels, restaurants and liquor shops in the state has stopped production.

The excise official said they have already asked the big hotels and restaurants in the city and tourists’ spots in the district to send a list of imported brands of beer the hospitality industry requires.

“Many premier hotels and restaurants have already mailed us their requirements of brands and the crisis is going to be absolutely normal by the end of this week. Interestingly, there has been a 15 per cent increase in consumption of spirit during this February as compared with the same month last year,” he added.

“It’s true that a crisis is going on in many bars, restaurants and hotels. Our association is chalking out a plan to seek the state finance department’s intervention,” said Suddesh Poddar, president of Hotel and Restaurant Association of Eastern India.

“Some important brands of imported scotch are getting available steadily in the city. We will soon submit a letter to the excise commissioner and the finance department after our meeting expressing the concerns of the industry,” Mr Poddar said.

With hotels, bars and restaurants running out of stock, the industry fears a loss in revenue in the coming months unless the government stocks up. The ongoing shortage of beer is owing to a hike in excise duty and retailer margin, leading to a rise in prices.

“This might lead to a loss of revenue for the state government as well as for hotels, bars and restaurants. The tourism industry may be affected if this goes on,” he felt. At the retail level, the prices of these imported brands range from Rs 6,000 to Rs 25,000 depending on the brand, size and age of the liquor. The situation is temporary and the corporation is already looking to stock up on these brands for the benefit of buyers, an excise official said.

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