AP’s Bifurcation Might Upset Beer Lovers

Posted : May 8, 2014 at 9:04 pm IST by ManaTeluguMovies

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All these days, none has spoke about root causes that will destroy the economies in Andhra Pradesh post bifurcation, but slowly one by one is coming out. Many politicians claimed that residue AP will fall into budget-deficit as income in Hyderabad is more. Contrary to this, even Telangana will also suffer and so are these ‘beer lovers’.

According to official reports, Telangana region produces 62 % of ‘Indian made foreign liquor’ but only accounts for 40% of sales in the region. Consumption of this liquor is pretty high in Andhra and Rayalaseema regions. Similarly TG produces five times the beer that Andhra region produces but accounts for very low sales. AP liquor and beer suppliers’ association president Niranjan Lal revealed these facts. Now what happens is that if these beer makers have to pay tax two times, then Telangana beer being sold in Andhra will be priced 11% more. This surely upsets beer-lovers who already feel that prices have soared a lot already.

Keeping consumers in Andhra Pradesh aside, the worst affected could be manufactures in Telangan region. If residue AP is not willing to give tax-exemption, then they have to forcibly down their production capacity. And if they want to supply beer in same rates to AP people, then production costs should be lessened by cutting jobs.