Tipplers left high & dry this summer as beer supply in MP shrinks by 14%

Bhopal: Madhya Pradesh has faced a 14% shortfall in beer supply this summer, leaving a section of tipplers deprived of the chilled drink. The deficit mainly brewed after the excise department shut a private manufacturing and bottling unit at Raisen in Feb this year. Industry sources, however, claimed the shortfall was as high as 45%, alleging that the state government failed to make alternative arrangements to meet demand for the popular summer drink.

Commissioner (excise) Deepak Saxena said the department had been able to bring down the deficit in demand and supply to 14% by arranging supplies from other distilleries in Madhya Pradesh and from other states. “The excise department has been able to reduce the deficit in demand and supply to 14% from 45% by arrangements of supply from alternative sources from other distilleries in Madhya Pradesh and other states,” Saxena said.

The private company operating the Raisen facility had a 40 to 50% share in beer manufacturing and supply, particularly in the low-end segment, besides bottling some major beer brands. According to estimates, beer demand in the peak season goes up to two lakh crates a day in the state, of which about one lakh crates used to come from the now-closed unit.

When asked why liquor contractors do not source beer from outside, a major contractor said they are given contracts to run liquor shops in the state on the assurance that the excise department would provide alcoholic drinks according to demand. “We pay them excise duty and they provide us drinks. They may give any excuses now but they failed to gauge the impending shortfall in the supply of beer following closure of factory at Raisen and now, they are looking askance on how to maintain the supply. They, in fact, had to release stock-piled in the closed factory in the market to mitigate the demand-supply gap,” he said.

He said unlike Uttar Pradesh and several other states, where liquor companies have wholesalers who contact liquor contractors to sell their brands, Madhya Pradesh has ‘mother depots’ of the excise department from where supply is made on demand. In those states, there is competition among liquor companies to sell their brands, but here the state depends on government supply, he said.

“The excise department should have taken steps to make alternative arrangements for supply of beer anticipating the shortfall but it didn’t do anything. It should have issued tenders for supply of beer from other states or maybe from outside the country but it didn’t do it. The contractors were not supposed to do it individually,” he said.

Assistant commissioner, excise, Bhopal, Virendra Singh Dhakad, said the shortage of beer this season is a nation-wide phenomenon. He said that when liquor shop contracts were being renewed without interruption, vendors used to build up stock for the season, but this year there were new contracts and delay in auction as well, so they could not create stock for the summer.

When asked why high-end beer brands are not available in cities like Bhopal, Dhakad said that due to shortage, vendors at smaller places like Berasia and Obedullaganj are booking stock of high-end beers, where demand is very low, and as a result vendors in Bhopal, where such brands are in demand, are not getting them.