INDIA – Beer, Indian-made foreign liquor (IMFL), and imported foreign liquor (IFL) are set to become pricier in Northern India as the state government implements its new excise policy for the 2024-25 financial year.
The policy, which comes into effect on June 12, will result in higher duties on liquor, leading to increased prices at vendors, bars, and pubs across Northern India.
Officials estimate that the new excise regime will boost Haryana’s revenue by approximately Rs250 crore (US$30.03M) compared to the previous policy. The price of a case of beer, whether consisting of 12 bottles (650ml each) or 24 bottles (330ml each), will increase by up to 20 percent.
Indian Made Foreign Liquor (IMFL) will see a 15 percent hike per bottle, while Imported Foreign Liquor (IFL) will become 12-15 percent more expensive, depending on the spirit’s proof.
Deputy Excise and Taxation Commissioner (West) Jitender Dudi explained that the new prices reflect the increased excise duty, higher raw material costs, and a revised bottling fee for beer.
“The bottling fee for beer supplied within Haryana has been increased from Rs11 (US$0.13) per bulk litre to Rs12 (US$0.14)per bulk litre, while the fee for beer supplied outside Haryana has gone up from Rs1 to Rs1.50 per bulk litre. The overall cost of beer will increase by 20 percent due to multiple reasons, including the rise in raw material costs,” Dudi said.
The new policy also expands the QR code-based track-and-trace system, which was initially introduced for IMFL and country liquor in 2023-24, to cover the sale of IFL as well. This system is designed to combat the sale of spurious and adulterated liquor.
Gurugram, a popular liquor destination in the National Capital Region (NCR) known for its discounts and offers, is likely to be impacted by the price hike. The city often witnesses a surge in consumers from Delhi, Noida, and Ghaziabad who travel to Gurugram to stock up on beer due to frequent shortages in their respective cities.
However, liquor vendors believe the price increase is marginal and won’t significantly deter consumers.
“Beer drinkers won’t hesitate to spend an extra Rs10 (US$0.12) or Rs20 (US$0.24). Inflationary pressures have already been driving up beer prices,” said Neeraj Sachdeva, Director of Lakeforest Wines.
He suggests that the current increase simply reflects broader economic trends affecting consumer goods, including alcoholic beverages.
Earlier this month, Haryana cabinet reduced the value added tax (VAT) for country liquor (CL), Indian made foreign liquor (IMFL), wine, beer from 13-14 percent to 12 percent. The VAT on imported foreign liquor was also slashed from 10 percent to 3 percent.
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