Liquor manufacturers in Kerala have relented and agreed to resume manufacturing liquor till Onam festival ends, after the Kerala Chief Minister, Mr Oommen Chandy promised to take some action on the selling price issue.

The Chief Minister's promise follows the request from liquor manufacturers to the State government to revise tariffs. Manufacturers had stopped taking orders from the State as the low selling price set by the Government was unprofitable due to high input costs.

“The Government requested us to resume manufacturing till the Onam festival ends because that is when demand is the highest and the decision by the industry would create problems,” Mr T. R. Vijaykumar, President, Kerala Bottlers' Federation (KBF) told Business Line.

The Kerala government, which met the Kerala Bottlers' Federation (KBF) and other industry representatives at Cochin, has promised to meet again after Onam and take the issues into consideration and initiate the process of restructuring tariffs, he said.

With Onam, a period when liquor sales soar in Kerala, just round the corner, the Government would face huge losses if manufacturing and sale of liquor was stopped. Last year, the revenue from liquor sales during Onam touched a record of Rs 155.61 crore.

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