THIRUVANANTHAPURAM: With the rise in the price of spirit, the manufacturers are demanding a higher price for Indian-made foreign liquor supplied to Beverages Corporation to overcome their loss. If the demands are not met, the manufacturers in Kerala are planning to reduce production and stop distribution.

The price of one-liter spirit has risen from Rs.60 to Rs. 76.50. This has forced many units to stop production.

90% of liquor sold in Kerala is produced by manufacturers in the state itself. There is a stock of liquor in the storehouses that can last for one and a half months. If the manufacturers stop the distribution, it will lead to a shortage of liquor.

After the Central Government ordered that 25% of Ethanol must be added to petrol, the oil companies have begun to buy huge quantities of spirit. This has led to its shortage. Extra Neutral Alcohol is used to make liquor.

The manufacturers are saying that the price given by Bevco is leading to losses for the manufacturing companies. The government company, Travancore Sugars and Chemicals which produces Jawan Rum had demanded a price rise, earlier.

The government is planning to settle the issue by raising the price a little bit. The government will do this by changing the tax structure and not raising retail sale. The final decision is yet to come.

The manufacturer's main demands are that Bevco raises the price that is given to them, cancel the stipulation that excise duty must be given prior, and lower the turnover tax (10%).