Indiana will now triple its annual cap on beer that breweries are allowed to sell within the state.

The Governor of Indiana Mike Pence has signed a bill that will lift the cap from 30,000 barrels to 90,000 barrels while preserving the privileges of retail and self-distribution.

Before the Senate Bill 297 was signed, brewers were allowed to sell more than 30,000 barrels in the state.

The issue of production caps came to light at the end of 2014 when one of the largest craft brewers of Indianapolis, Sun King Brewing, had to break ties with its three in-state wholesalers to avoid exceeding the cap.

While the bill will help the growing craft beer industry, it will also limit annual distribution to 30,000 barrels.

This might force microbreweries to follow the three-tier system of supplier, wholesaler, and retailer after 30,000 barrels.

Brewbound quoted Sun King founder Clay Robinson as saying: "It’s hard to set an official timeframe as we are gearing up for summer and need to make sure we have enough beer for our current distribution footprint before we expand out any.

"I’m hopeful we will be in a position to start re-opening markets later this summer and launch new ones to complete our statewide footprint this fall."

Following Sun King’s severing of ties with its three wholesaler partners, the brewery said it was partnering with Munster-based 3 Floyds Brewing, to launch a campaign to educate people about the issue.

Close to 3,000 said that they were in support of legislative change.

Before this, the cap was changed in 2011 when lawmakers had lifted it from 20,000 to 30,000 barrels.