The Telangana government’s proposed liquor price hike, expected to exceed 10%, is likely to impact the state’s hospitality sector. While the policy spares cheap liquor, prices of mid-range and premium bottles, particularly those priced above ₹500, could rise by approximately ₹50 per full bottle.
This increase comes on the heels of a recent beer price revision, marking the government’s broader strategy to enhance excise revenue. Industry insiders predict that higher liquor costs could affect restaurants, bars, and hotels, potentially leading to increased menu prices or reduced demand for premium spirits.
Hospitality operators in Telangana are closely watching the developments, as liquor sales contribute significantly to their revenue. Many fear the hike could deter patrons or shift preferences to lower-priced alternatives, affecting the profitability of premium establishments.
To mitigate the impact, hoteliers may explore alternative strategies, such as diversifying beverage offerings, promoting non-alcoholic options, or enhancing overall guest experiences. The price increase also raises questions about long-term implications for the state’s hospitality-driven tourism economy.
As the excise policy reshapes Telangana’s liquor market, stakeholders hope for a balanced approach that considers both revenue generation and the hospitality sector’s growth.
