Here's why United Breweries suspends beer supply to Telangana Beverages Corporation

New Delhi: United Breweries Ltd on Wednesday said it has decided to suspend supply of its beer to Telangana Beverages Corporation Ltd with immediate effect.

The decision has been taken due to the non-revision of the basic price of the company's beer from 2019-20 by Telangana Beverages Corporation Ltd (TGBCL), resulting in huge losses in the state, United Breweries Ltd (UBL) said in a regulatory filing.

Moreover, significant overdues remained unpaid by TGBCL for the past supply of beer by the company, it added without disclosing the details.

"As a result, the continued supply of our beer to TGBCL has been rendered unviable," UBL said.