Do you or your friends often travel to Gurugram to buy liquor at cheaper prices? If yes, that may change soon. The Delhi government is reportedly considering bringing liquor prices in line with those in the National Capital Region (NCR) cities, particularly Gurugram, to ensure uniformity, especially in the premium segment.
New liquor policy in pipeline
According to a source-based report by The Indian Express, the excise committee, during a meeting on Friday, discussed a framework to bring about a more “transparent and socially secure” policy. A draft of this policy is expected to be up by next month.
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An official familiar with the discussions told the outlet that Friday’s meeting, one of four held so far, focused on “the fixed retail margin, excise duty, legal age for consuming beer”.
“In the meeting held on Friday, discussion on various matters like the fixed retail margin, excise duty, legal age for consuming beer in Delhi and availability of premium brands,” an official was quoted as saying in the report.
Fixed retail margin cap keeps Delhi prices higher
One of the key factors behind Delhi’s higher liquor prices is the fixed retail margin cap imposed on per-bottle sales, a restriction that doesn’t exist in Gurugram. At present, Delhi caps retail margins at Rs 50 per bottle for Indian Made Foreign Liquor (IMFL) and Rs 100 for imported liquor.
“The liquor policy in Gurgaon is also different from the one in Delhi. The trader has the flexibility to decide the prices and discounts because they pay a huge amount during the auction of the licence, a minimum reserve price of around Rs 20 crore, which also goes above during the auctioning… So, they have to recover the cost by giving discounts and offers.”
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The official noted, “For instance, if Black Label sells for Rs 3,500 in Delhi, it might be selling for Rs 2,400 in Gurgaon.”
Non-availability of premium brands
Delhi’s fixed margin cap, combined with the absence of private liquor shops, has led to limited availability of premium imported liquor in the city. Currently, liquor sales are controlled by four government corporations operating over 700 outlets.
Official noted that state-run shops often prioritise lesser-known brands priced between Rs 400 and Rs 600, rather than stocking high-end labels.
“In the absence of private shops, the government-run shops have also monopolised the retail business by pushing less popular brands at the range of Rs 400 to Rs 600, instead of stocking premium brands,” the official explained, before adding, “if we rationalise these margins and sell popular premium brands in all the shops in Delhi, the price will be similar and people will not go to Gurgaon or Noida.”
This, they said, would also boost the capital’s revenue.
Private liquor shops may return
The government is also considering reintroducing private liquor stores, which were phased out after November 2021 when the previous excise policy was scrapped amid allegations of irregularities and favouritism. The rollback had resulted in an estimated Rs 2,002 crore loss to the exchequer.
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“Currently, premium brands are not available at liquor vends under the existing policy, which has resulted in revenue losses for the government,” the official noted, before adding, “To address this, the government is now considering making premium brands available at every outlet.”
Lowering drinking age on agenda?
The committee also discussed the proposal to lower the legal drinking age for beer from 25 to 21, but officials said there was no consensus on the change. As a result, the current drinking age is likely to remain unchanged in the upcoming policy.
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