CHINESE liquor maker Kweichow Moutai Co. Ltd. said yesterday it will raise prices on some of its products by as much as 30 percent from the start of September.

The company, which makes a fiery liquor called baijiu that is popular at Chinese banquets, said in a filing to the Shanghai Stock Exchange that factory prices of some of the products will increase on average by 20 to 30 percent, although the company said it would not increase its price guidance to retailers.

The firm said the price increase may have an effect on its 2012 operating results.

In March, Premier Wen Jiabao pledged to ban the use of public funds for luxury items including Moutai baijiu, which retails for about US$300 per standard bottle and well into the thousands for rare, aged varieties.

The government ban has already affected sales in some cities. In late July, Tianjin, a bustling port city near Beijing, reported Moutai sales were down by as much as 50 percent over the past half year.

Kweichow Moutai competes with Wuliangye Yibin Co. Ltd. in China’s baijiu market.

(SD-Agencies)