Beer firms want to compete with cool drinks

Industry body says beer not alcohol, wants nod to sell it in retail shops

As the beer industry grapples with a miniscule growth rate of three to four per cent this financial year compared to a rate of 12 per cent in 2012, its industry body All Indian Brewers Association (AIBA) is appealing to all state governments to make changes in the taxation policy which will in turn change the mindset of people towards the drink.

Speaking to this correspondent before his meeting the principal secretary of Telangana, AIBA director general Sovan Roy said, “Beer is actually a fun, social drink and it is not right to combine and treat it on par with spirits, which actually have 42 per cent alcohol content. Whereas beer has just 5-8 per cent alcohol. The government has an irrational taxation policy towards beer and in terms of absolute alcohol content, it is taxed more than spirits. ”

Explaining further, he said: “We are appealing to the each state government to revise their taxation policy towards beer as such and also make an amend the laws to make it is available in modern retail shops and exclusive beer shops.”

Such relaxation, he said, will help in curbing spurious alcohol, which is threatening the health of people. According some studies, he said, the beer market in India is valued at $4.13 billion (approximately '24,000 crore) in 2013, but that share has been declining in the last two years.

The country is home to 80 breweries of 10 leading beer manufacturers, but the mindset of the government towards this drink is what is causing the declining growth rate.

Elaborating further, he said, “Kerala and Maharashtra have relaxed norms for beer shops and this decision led to a significant change in the people’s attitude and social behaviour. This proves the point that when separated beer can actually have good impact on society, when consumed in minimal terms. While in Telangana, the breweries are oversupplied but yet with the changes in the taxation policy we will definitely see a growth in demand in future.”