Haryana's New excise policy: Gurugram liquor prices surge by 20%

The Haryana government has implemented a new excise policy from June 12, 2024, raising the prices of country liquor, beer, and foreign liquors. The policy includes measures to prevent vendor monopolies and offers flexibility to bar operators in sourcing liquor. The recent auction of 324 liquor vends in Gurugram generated significant revenue, with further auctions expected to increase income.
Haryana's New excise policy: Gurugram liquor prices surge by 20%
The Haryana government has implemented a new excise policy from June 12, 2024, increasing the prices of alcoholic beverages. As per the new policy, all the consumers of Gurugram will now have to pay an additional INR 5 for a bottle of country liquor and INR 20 more for beer. The recent price hike also extends to foreign liquors, with a 5 per cent increase in their current prices.
This new policy represents a 7 per cent rise compared to the previous year’s reserve price.

To balance the impact of the price hikes, the policy also includes provisions to prevent monopolies among liquor vendors and provide relief to bar operators. Previously, licensed bar operators could source liquor from two nearby shops, often facing arbitrary pricing from contractors. However, the new policy now allows bar operators to procure liquor from any of three different shops, provided these shops belong to separate license holders. This change aims to enhance competition and offer more flexibility to bar operators.
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The 2024-25 excise policy has also led to a significant hike in liquor prices in Gurugram, with a 20 per cent increase. Alongside the price changes, the Haryana government successfully auctioned 162 zones with 324 liquor vends across Gurugram East and West through e-tenders, generating about INR 1,756 crore. This figure marks a 9.4 per cent increase over the reserve price set by the excise department. The reserve price is the minimum bid amount at which the government auctions a liquor vend.

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Despite the price hikes, liquor sales have remained robust, as several consumers from Delhi and Noida were seen purchasing liquor from vends in Gurugram. The highest bid in the recent auction was INR 50.57 crore for a vend on Golf Course Road, followed by a bid of INR 48.28 crore for a vend at Bristol Chowk. Data from the excise department indicates that five of the top ten bids were for vends near the Delhi border, highlighting the strategic importance of these locations.

Additional auctions are scheduled, with two zones in the west and twenty in the east set to be auctioned on June 14. Officials expect the revenue to increase further as more liquor shops are auctioned. The new excise policy also includes a provision to allow licensed bar operators to purchase liquor from any of their two nearest vends, provided they belong to different license holders. This measure offers greater flexibility and convenience for bar operators, ensuring a more competitive and transparent system.

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Overall, the Haryana government’s new excise policy aims to streamline the liquor trade, prevent monopolies, and ensure the availability of quality liquor at reasonable prices. The policy changes are expected to enhance competition, increase revenue, and provide better options for consumers and bar operators.

(Images courtesy: Canva)
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