Indian liquor producers urge Delhi government to revise excise policy for fair market access
Domestic spirits manufacturers push for policy changes, citing high license fees that favor imported alcohol and limit market entry.
INDIA – Domestic premium liquor manufacturers in India are calling on the Delhi government to revise its excise policy, arguing that it disproportionately benefits imported alcohol brands while creating financial barriers for local products.
The industry claims that the high brand-license fees imposed on Indian spirits have prevented several premium domestic whiskies, gins, wines, and beers from entering Delhi’s market.
Currently, domestic whisky brands must pay Rs 25 lakh (US$29K) per brand in license fees, whereas imported bottled-in-origin products face significantly lower charges ranging from Rs 50,000 to Rs 3 lakh.
“The Delhi excise policy is skewed in favor of imported liquor. For Indian premium brands with lower volumes, the cost of entry is too high,” said Anant Iyer, Director General of the Confederation of Indian Alcoholic Beverage Companies.
The industry has long pushed for equalized fees between domestic and imported brands to level the playing field.
The fee structure for Indian spirits varies across categories: whisky incurs a Rs 25 lakh charge, rum, gin, and vodka require Rs 12 lakh (US$14K), brandy is charged Rs 8 lakh (US$9.3K), and beer costs Rs 15 lakh (US$17.5K) per brand.
In contrast, imported liquors can register five brands for just Rs 15 lakh (US$17.5K), with an additional charge of Rs 50,000 (US$584)per extra brand.
Similarly, imported wines and liqueurs can register 10 brands for Rs 7 lakh (US$8.2K).
Industry representatives warn that this pricing disparity limits consumer access to quality Indian liquors and encourages buyers to purchase from neighboring states, leading to revenue losses for the Delhi government.
They also argue that reducing brand-license fees for domestic spirits would support initiatives like Make in India and Aatmanirbhar Bharat.
The liquor industry currently supports 50 lakh farmers, provides employment to 20 lakh workers, and contributes approximately Rs 3 lakh crore in annual tax revenue.
With a new government in place, liquor industry stakeholders are hopeful that Delhi’s excise policy will be revised to allow the return of premium Indian single malts, wines, and gins to the market.
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