By Rishika Sadam, Nandan Mandayam and Indranil Sarkar HYDERABAD/BENGALURU (Reuters) -Heineken-owned United Breweries on Wednesday stopped supplying beer to Telangana in southern India, following the state's refusal to allow price rises,

United Breweries Limited (UBL), which manufactures and sells popular beer brands such as Kingfisher, Heineken, Amstel Bier and London Pilsner, has suspended bee

Nearly 20% of United Breweries' sales come from Telangana, making it one of its top markets & decision to stop sales will likely dent its topline growth, it is learnt.

United Breweries said on Wednesday that it has suspended supplying beer to a state-run corporation in the southern Indian state of Telangana, which will halt sales of popular beer brands such as Heineken and Kingfisher in one of the country's top liquor-selling states.

Heineken NV’s Indian unit suspended supply of beer to the southern Indian state of Telangana, citing unprofitable prices and missed payments.

United Breweries Ltd has suspended beer supply to Telangana due to owed payments and low state prices. The Telangana Beverages Corporation Ltd and excise department have started rationing beer stocks to depots.

Wednesday's unusual move by India's biggest beer company sparked a fall of 7% in its shares at a time when the industry faces intense scrutiny nationwide

Telangana is India's biggest beer-consuming state, with Kingfisher, including Kingfisher Strong, Kingfisher Ultra, and Kingfisher UltraMax, accounting for around 60 per cent of the total sales. Telangana accounts for around 15-20% of United Breweries’ beer sales and 10%-12% of the company's earnings.

United Breweries, the maker of popular beer brands such as Heineken and Kingfisher, announced on Wednesday that it has halted the supply of its beer to the Telangana Beverages Corporation Limited (TGBCL),