Gurugram liquor shops jack up prices in windfall over Delhi excise mess

Liquor prices in Gurugram, India have increased by up to 33% due to a shortage of popular brands in Delhi, prompting customers to turn to Gurugram for their purchases. Retailers in Gurugram have stopped offers and discounts and have raised prices, taking advantage of the situation. Beer prices have also risen. The shortage in Delhi is a result of the city's controversial excise policy and the rejection of sale licences for major companies. The absence of major brands from Delhi's liquor market has allowed retailers in Gurugram to raise prices.

Gurugram has, for years, been the National Capital Region’s (NCR) ubiquitous liquor-shopping destination of choice. With a variety of offers, discounts and lower prices, residents of Delhi and Noida had a strong reason to stock up their cabinets with bottles from stores in Millennium City.

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But, over the past few weeks, this price gulf has shrunk.

With most popular brands missing from shelves in Delhi’s stores due to the extant confusion over the city’s liquor policy and demand skyrocketing during the festive season, retailers in Gurugram have not only stopped all offers and discounts, they have cranked up prices, often charging 33% more than two months ago.

For instance, a bottle of Jack Daniel’s, which sold for ₹1,800 now goes for ₹2,300. Similarly Black Label has gone from ₹1,800 to ₹2,200, Jameson from ₹1,200 to ₹1,600, and Glenlivet 12 from ₹2,900 to ₹3,400.

Most of these brands are unavailable in the Capital, prompting customers to turn to Gurugram, no matter. And this has essentially given Gurugram’s liquor retailers free rein to shore up their prices, even as their sales continue to jump. Beer prices have jumped as well. A 330ml bottle of Kingfisher Premium, for instance, now retails for ₹120, up from ₹90, while Corona goes for ₹200 instead of ₹165.

Delhi excise officials denied a shortage of liquor in the Capital.

Mukesh Yadav, the manager of a liquor store on Gurugram’s Golf Course Extension Road, which has increased prices by around 30% said they will increase prices by another 10% next week and even further in the week before Diwali.

“This is the time of year when liquor sales are at their highest. People buy in bulk for their parties. We will receive fresh stock next week and will sell it at higher prices, depending on the demand. Prices are likely to increase even more during the first week of November,” Yadav said.

On the flip side, stores in Delhi bear largely vacant shelves, with few brands available, and premium options nearly non-existent. Single malts, high-end wines, craft gins and imported beer are things of the past. And the few varieties in stock are priced similarly to what they are in Gurugram, even after the price increases.

At the heart of the tumult is a familiar issue – Delhi’s controversial excise policy, which was scheduled to expire on September 30. While the government issued a notification allowing licensees to apply for a six-month extension after paying a fee, some categories — wholesalers, for instance — need to get fresh licences, a lengthy process that needs reams of documentation and a week’s time to wrap up.

To make matters worse, the notification came a day before the policy lapsed — on September 29 — which was followed by a long weekend. This meant that many restaurants, bars and pubs, who otherwise managed to extend their existing licences, soon ran out of stocks — especially of premium brands that they usually store in lower quantities — since most wholesale traders were yet to resume supplies in full volumes.

A major part of the current blight can also be traced to the absence of major companies from Delhi’s liquor market entirely. The state excise department, in April, rejected the sale licence applications of Pernod Ricard, Indospirits, and Brindco, over the ongoing investigations into the 2021-22 excise policy.

Ram Kumar, the manager of a liquor shop on Golf Course Road, said the demand for Glenlivet, Jack Daniel , Jameson and vodka in his store has increased and added that the majority of buyers live outside Delhi.

“Earlier, buyers used to ask for discounts, but not any more. We have stopped discounts as people are ready to pay extra for their choices,” he said.

Saurabh Pathak a resident of New Friends Colony in Delhi , said barely any popular brands are available in Delhi. “Gurugram stores have jacked up their prices. But with Delhi’s shelves empty, we are left with no other option than to buy,”he said.

Vinod Giri, director general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), confirmed that many popular or premium brands have been missing from Delhi’s retail shelves.

“Premium Indian single malt brands have stayed away from Delhi due to an exorbitant licence fee of a minimum of ₹25 lakh per year... Many large companies have also become cautious due to their previous experience during the excise policy transitions over the past couple of years,” Giri said.

Delhi’s liquor market has, over the past couple of years, been shaken by the investigations into the 2021-22 excise policy. The regime sought to overhaul the city’s liquor trade, but was scrapped in July last year after a spat between the Centre and the Delhi government run by the Aam Aadmi Party (AAP).

The formulation of a new excise policy has been pending for over a year, with the 2021-22 policy being extended periodically to fill the vacuum.

Delhi’s losses have been Gurugram’s gain.

“We can earn till the excise policy in Delhi is not streamlined and brands are available,” Kumar said.

A Delhi excise official, who did not want to be named said there is no shortage of liquor stocks in Delhi.

“According to excise records, over 1,000 liquor brands, including several premium brands, have been registered, and enough stocks are available in retail stores, as well hotels, clubs and restaurants. Some brands are not registered because of the ongoing excise policy probes, and even the courts did not give relief to companies whose brands were not registered,” said an official.

To be sure, Ravinder Singh, deputy commissioner of excise and taxation, Gurugram (east), said shopkeepers have enhanced their orders across labels.

“We keep a check on the number of brands available and to ensure people get a large variety of liquor and they are not promoting one particular brand. Many owners have applied for labels to ensure their shops are equipped with bottles from all brands. There has been an increase of 35% in the sales of IMFL and IFL” he said.

Amit Bhatia, deputy commissioner of excise and taxation, Gurugram (west), said that since there is no maximum retail price on liquor in Haryana, they can sell it at any price without having to give discounts, and prices are cheaper than Delhi.