Terming Odisha government's move to cancel label registration of five brewing companies as "unjust and uncalled for", the All India Brewers Association (AIBA) today said the action would result in loss of business and revenue of the state.
Earlier, acting on the recommendation of the Odisha State Beverages Corporation (OSBC), the state government has issued show-cause notices to five liquor companies in the state as to why their label licenses should not be cancelled in connection with the dispute over offer price.
The state government has directed the companies to reply within April 25.
"The recommendation made by the Odisha State Beverages Corporation to the Orissa State Government regarding cancellation of label registration of five brewing companies, is unjust and uncalled for," a statement issued by the AIBA said.
The state-run wholesale distributor of beer and Indian Made Foreign Liquor (IMFL) in the state, had urged the state government last week to cancel the licenses of these five breweries which failed to sign the agreement for supply of beer for 2015-16.
The breweries are Carlsberg, United Breweries Ltd, SABMiller India, MP Beer Products Ltd and Devans Breweries Ltd who between them control about 70 per cent of the beer trade in the state.
The corporation had also moved the state government for cancellation of factory licenses and label registration of breweries run by these five companies, which are opposed to the reduction in offer price of beer to the extent of 20 per cent as per the provision of the new excise policy of the state.
If their licenses are cancelled, the companies will not be allowed to produce alcoholic beverages in the state. The state government, on its part, has claimed that excise revenue collection has been affected as the companies are supplying beer without signing the pact.
