Pointing towards increasing amount of arbitrariness in beer regulations in Karnataka, the Brewers Association of India (BAI) has said the State Government while dealing with the applications of rounding off of the declared price (DP) was favouring some companies.
The Karnataka government introduced the concept of rounding off of the DP (declared price) to nearest Rs 5 was introduced, while the application of one beer supplier, viz, M/s Som Breweries and Distilleries which applied with an upward price revision got approved without due documentary substantiation, the plea of BAI members were put on hold, the BAI, the apex body of the beer industry, which represents India's largest beer makers such as the AB InBev, Carlsberg, and United Breweries (a Heineken company), said in its representation to the State government.
"As a result, our member companies, which are the biggest investors and contributors to government revenues in the state, feel greatly aggrieved and discriminated against," said that letter and demanded the State government to ensure level playing field for all beer suppliers in Karnataka. BAI has demanded that applications of its members should also be cleared with respect to rounding off in the DP where there is no consequent change in the MRP.
Highlighting the biasness in implementation of excise rules, the BAI has stated that "this is against the ethos of fair competition and will do more harm than good in the long run for the industry, the government revenues, the consumers, local economy and investment in the state".
According to BAI Director General Vinod Giri, “in recent times we have been witnessing increasing amount of arbitrariness in beer regulation in the state which is threatening the industry growth as is evident from the recent trends in beer sales in the state.”