Why liquor prices are rising in Gurugram due to Haryana’s latest excise policy

Five of the top 10 bids for liquor vends are located near the border with Delhi.

Haryana’s new excise policy- which proposes an increase in duties on liquor- came into force this week. Owing to this, there is a 20% hike in liquor prices in Gurugram after the successful auction of 162 zones with 324 liquor vends in Gurugram east and west. This fetched Haryana government ₹1,756 crore- 9.4 per cent rise above the reserve prices set by the excise department. The reserve price is the lowest price at which the department auctions a vend.

The auction fetched Haryana government ₹1,756 crore- 9.4 per cent rise above the reserve prices set by the excise department.

National Restaurant Association of India (NRAI) trustee Rahul Singh, the founder of Beer Café, said, “The state continues to meet their long-term objectives of breaking the cartels, broad-basing the trade by facilitating the entry of new players of even modest means. And therefore, there is provision of supply to bars from any of the nearest two different L-2 retail vend licensees as per their choice. Also, none of the said two L-2 licensees can demand from the bar licensee a price which is more than 10% above the minimum retail sale price fixed as per the policy."

Top vends near Delhi

Data shared by the excise department showed that five of the top 10 bids for liquor vends are located near the border with Delhi.

More auctions ahead

Further auctions are scheduled, including 20 zones in Gurugram east and two in the west on June 14 as Amit Bhatia, deputy excise and taxation commissioner (east) said, “The revenue generated is expected to rise significantly once all shops are auctioned."

Footfall likely to increase

Jitender Dudi, deputy commissioner of excise and taxation (Gurugram west), said that there could be a rise in footfall at stores with the onset of the wedding season. He told Hindustan Times, “While most shops remain with previous owners, the policy’s new provisions will enhance market dynamics."