High liquor prices: Restaurant body sends letter to Deputy CM

The Pune Restaurant and Hoteliers Association (PRHA) has sent a protest letter to Deputy Chief Minister Ajit Pawar. The association members have requested him to roll back the newly hiked prices of liquor. Prices of liquor have gone up by almost 50 per cent in the past month-and-half. In addition to this, restaurants also have to add service tax to their customers' bill. This has taken a toll and industry insiders say business has been affected by almost 40 per cent.


On the upward curve: Prices of liquor have gone up by almost 50 per
cent in the past month-and-half. file pic

The letter of protest was sent a couple of weeks ago. "We are going through tough times; the new prices are so high we have seen a major drop in sales. It's not just Pune, but business all across the state has been affected," said Ganesh Shetty, president, PRHA. "We, therefore, decided to write a protest letter to the Deputy CM, Ajit Pawar."

Shetty said even after all this, things did not seem to be moving in the desired direction. "Our counterparts in Mumbai met him (Pawar) personally a few days ago, but things do not look very positive. It's healthy to hike prices by 10 per cent, but 50 per cent is too high. Customers no longer prefer popular brands, and instead go for local brands which come cheap."

Association members fear that the high prices may encourage illegal activities like smuggling liquor from into the state because it is available at cheaper rates in neighbouring Goa and Andhra Pradesh. They say this will also affect of the revenue collected by the state government.

Sunil Chandani, owner of a nightclub in Koregaon Park, said the entire ordering pattern had changed. "The companies have cut down on the profit margins of the distributor, who in return is expecting quick payment from the buyers. The pattern of business has changed. In fact, we are paying much higher prices while buying bottles, but while selling pegs to the customers it's normal (prices)," said Chandani.

He added that sales had also been affected because of the hype created about the prices, which is keeping customers at bay. A restaurant owner from Hinjewadi said that it would take another six months for business to get back to normal. "Right now, customers are arguing with us over the prices, but it will take time for them to get used to the rates because the state government is not in a mood to listen to us," said the restaurant owner, requesting anonymity.