Punjab rolls out new excise policy, liquor prices to drop by 35-60%

Ruchika M Khanna

Chandigarh, June 8

Punjab today rolled out the excise policy 2022-23, making liquor cheaper by 35-60 per cent. With the quota now being open, the rates of Indian Made Foreign Liquor (IMFL) and beer will be marginally down beginning July 1 and the prices of some brands on a par with those prevailing in Chandigarh.

The rates will be 10 to 15 per cent lower than in Haryana. The aim is to stop liquor being smuggled into the state from both Haryana and Chandigarh. The rates of beer will vary between Rs 120 and Rs 130 per bottle against Rs 120-Rs 150 per bottle in Chandigarh. The beer rate in Punjab currently is around Rs 180-Rs 200 per bottle.

Similarly, the most widely consumed brand of the IMFL will cost Rs 400 in Punjab as against Rs 510 in Chandigarh. The bottle is at present available in Punjab at Rs 700.

The Punjab Government hopes to raise the excise revenue by 40 per cent on the assumption that the smuggling from Chandigarh and Haryana would end with the fall in the liquor prices.

The state is hopeful that the new policy will take the revenue from Rs 6,158 crore in 2021-22 to Rs 9,647.85 crore in this fiscal.

The new liquor policy, the first by the Aam Aadmi Party government, has recommended several structural changes from the policies approved for the past several years. Instead of allotting liquor vends through a draw of lots, the state will auction these by inviting tenders.

“We have made several structural changes, but the policy has many checks and balances to ensure that smuggling into and from the state is kept in check. Though the quota is open for both IMFL and beer, the Excise Commissioner will have overriding powers to prohibit the excess lifting of liquor quota and demand will be continuously assessed,” said Excise Commissioner Varun Roojam.

He said the department’s enforcement wing was being strengthened to check liquor adulteration, smuggling and curb opening of illegal distilleries. “For this, two additional battalions of the police are being allotted to the department,” Roojam said.

Another major change is that distillers, liquor distributors and liquor retailers have been delinked. The government has also lifted the ban on the opening of new distilleries in the state.

KEY FEATURES

• Distillers, liquor distributors and retailers have been delinked. Earlier, they were themselves involved in the liquor retail business
• In case of country-made liquor, each distiller will appoint one distributor. Similarly, all other manufacturers will have one distributor, who will then supply liquor to all retailers
• The government has also lifted the ban on opening of new distilleries in the state
• The size of the groups (licensing units) is being brought down to 177 from 750 last year