India’s largest beer company, United Breweries (UB), has ceased supplying its products to Telangana’s state-run beverages corporation after requests to increase the price have been repeatedly refused, according to local reports.

UB has been pushing for a price increase for its beer products, arguing that the base prices have not been adjusted since the financial year 2019-20, causing losses to the brewer. UB claims to have lost INR7 billion (USD80 million) in lost revenue.

The move to cease its supplies in the region is disrupting the supply of popular brands from the Heineken-owned company in one of India’s largest beer markets.

Delays in renewing licences and increasing excise levies have disrupted production schedules, leading to shortages in the state, according to UB. Local distributors and retailers have reportedly voiced frustration over supply constraints, attributing the problem to policy bottlenecks and the ongoing standoff.

The company joins other major international beverage groups in pressing for resolution on USD466 million in delayed payments from the state government. They have cited significant financial losses due to unadjusted base prices since 2019/20.

In 2021 Heineken took a majority shareholding in UB.