India: United Breweries forced to cut down on production in Andhra Pradesh

The Andhra Pradesh Government’s new liquor policy has dealt a blow to United Breweries Holdings Limited, which has drastically cut down on production at its unit located at Bantupalli village in Srikakulam district ever since the new regulations came into force, The Hindu reported on January 5.

Sources said that the Excise Department of the State Government, which has taken over running of liquor shops across the State, has stopped purchase and sale of several popular brands of liquor sold by United Breweries, including beer. The company, which earlier used to produce around 11 lakh bottles per month, is now producing only one lakh bottles. The company is unable to export beverages from Srikakulam district as it has its own units both in neighbouring Telangana and Odisha.

It is learnt that the company has laid off 600 employees due to the huge drop in production at the Bantupalli unit.

CITU and other trade unions staged protests demanding the continuation of the workers’ services. “The State Government should do justice to all the employees and workers as they have lost their livelihood due to the new liquor policy. The company should also take initiatives to overcome its hurdles as thousands of people are directly and indirectly dependent on the economic activity created by the plant in Bantupalli, Ranasthalam, Kosta and Pydibhimavaram villages,” said D. Govinda Rao, CITU State vice-president.

CITU district president P. Tejeswara Rao alleged that the company has violated labour laws by firing the employees without giving them statutory notice. “The company has been filing false cases against the agitating employees instead of doing justice to them,” he said.

United Breweries Workers’ Union president I. Narayana Rao and general secretary Jaka Ganga Raju alleged that the company had earned crores of rupees in profit through liquor sale in the last 20 years but has failed to do justice to the workers. They vowed to intensify their agitation if the management and the government fail to do justice to the employees and their family members.

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