The liquor industry has called on the government to accelerate the long-pending price revision for suppliers, citing substantial increases in manufacturing and operational costs. The industry reports a notable escalation in the costs of key inputs such as PET bottles, labels, caps, and cartons. This increase is largely attributed to global factors, including ongoing conflicts, which have led to significant price hikes in April compared to February and March.
Rising Costs of Raw Materials
In the past two months, the costs of essential raw materials per case have increased across various packaging components. For instance, the price of PET bottles rose from 84 to 110.4, an increase of 31.43%. Labels saw an increase from 4.04 to 5, representing a 23.76% rise. Caps increased from 22 to 28, reflecting a 27.27% increase. Additionally, CC boxes (cartons) went up from 16 to 19, an increase of 18.75%.
Concerns Over Delayed Payments
Furthermore, suppliers have expressed concerns about delayed payments, with cycles extending to 100-120 days. This delay is severely impacting cash flows and increasing interest burdens, they added. The industry emphasizes that timely price revisions are crucial to sustain operations and ensure supply continuity.
The liquor industry's plea comes amid broader economic pressures, including inflation and supply chain disruptions. Stakeholders hope the government will address these issues promptly to maintain industry stability.
