THIRUVANANTHAPURAM: Price of alcohol in the state is set to increase. An increase of seven per cent is expected at the base price of alcohol when it is bought from the sellers directly. Sources say that the government is set to give an official nod to Bevco’s decision to hike prices. With the proportional increase in taxes, it is expected that the price would of existing alcoholic beverages increase by Rs 100.

Beverages corporation ratifies the agreement to buy alcohol from manufacturers on the basis of the price of extra neutral alcohol used for making alcoholic beverages. Bevco is receiving alcohol, at the rate, when the price of spirit was just Rs 35 per litre. But even after the price of spirit crossed Rs 60, no increase was witnessed in the price of Alcohol bought from the companies.

Meanwhile, the excise tax on alcohol was hiked to 35 per cent, in order to bridge the loss of revenue induced by the covid pandemic. Bevco is waiting for the policy decision from the government on increasing the price of alcohol.