Implementation of New Excise Policy
Haryana’s new excise policy for 2024-25 came into effect on Wednesday, leading to a 20% increase in liquor prices across Gurugram. The policy, which includes higher duties on liquor, aims to generate additional revenue for the state and streamline the liquor trade.
Auction of Liquor Vends
As part of the implementation, the Haryana government auctioned 162 zones, comprising 324 liquor vends in Gurugram East and West through e-tenders. This auction fetched ₹1,756 crore, reflecting a 9.4% increase over the reserve price, according to excise officials. The reserve price is the minimum price set for auctioning a vend.
Consumer Reactions to Price Hike
Despite the price hike, consumers from Delhi and Noida were seen purchasing liquor in Gurugram. Vikas Ambawata, a resident of Chattarpur in Delhi, remarked on the noticeable price increase but appreciated the wider variety of brands available in Gurugram. “Since there are hardly any brands available in Delhi, I prefer to buy from Gurugram, even if I have to pay extra,” he said.
Ravi Desai from Vasant Kunj echoed similar sentiments, noting that the selection and availability in Gurugram are superior to Delhi. “The selection in Gurugram is far better than in Delhi, where many stores run out of stock quickly. The swanky liquor shops are worth a visit, and it is worth the extra cost for the convenience and choice,” he added.
Highest Bids and Revenue Increase
The auction saw significant interest, with the highest bid reaching ₹50.57 crore for a vend on Golf Course Road, followed by a ₹48.28 crore bid for a vend at Bristol Chowk. Data from the excise department indicated that five of the top ten bids were for vends near the Delhi border.
Future Auctions and Revenue Expectations
Further auctions are scheduled for June 14, with two zones in the west and 20 in the east yet to be auctioned. Deputy Excise and Taxation Commissioner (East) Amit Bhatia highlighted the revenue increase, noting, “The amount will increase once all the liquor shops are auctioned. The district has done well, and revenue has increased.”
Flexibility for Bar Operators
The new excise policy also grants licensed bar operators the flexibility to buy liquor from any of their two nearest vends, provided these shops belong to different license holders. This change aims to offer more convenience to bar operators in sourcing their supplies.
Industry Expert Insights
Rahul Singh, trustee of the National Restaurant Association of India (NRAI) and founder of Beer Café, stated that one of the policy’s main objectives is to establish a transparent system for allotting retail outlets and to provide high-quality liquor at reasonable prices. “The state continues to meet its long-term objectives of breaking cartels and broad-basing the trade by facilitating the entry of new players of even modest means,” he said.
Anticipated Market Changes
With the new policy in place, Gurugram’s liquor market is set for significant changes, promising increased variety and convenience for consumers despite the price hike.
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