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Liquor crisis brewing in the city, likely to intensify from with festive season
Empty shelves at most shops and vends, due to the transition to the new excise regime, are forcing customers to visit multiple stores or neighbouring cities such as Gurugram and Noida. Retailers say the crisis, though temporary, will only worsen in the coming weeks as demand usually shoots up in October and November, ahead of the festive season, and peaks around Diwali.
A liquor shortage is brewing in the city in the midst of a transition in the city’s excise rules as empty shelves at most shops and vends are forcing customers to visit multiple stores or neighbouring cities such as Gurugram and Noida. Retailers say the crisis, though temporary, will only worsen in the coming weeks as demand usually shoots up in October and November, ahead of the festive season, and peaks around Diwali.
The shortage is because all private retail vends have stopped restocking supplies since they have to shut shop from October 1 to ensure a smooth transition to the new excise regime, which kicks in from November 17. Diwali falls on November 4 this year.
While government vends in Delhi will remain open between October 1 and November 16, a spot-check by HT found that they are ill-equipped to cover even the usual demand and mostly have cheaper brands on offer. This is because even the government stores are not restocking at their usual pace as they will permanently shut from November 17.
HT on Thursday visited at least a dozen liquor stores in east, central and south Delhi, and found that customers either had to compromise on their choice of alcohol or return empty handed due to the unavailability of mid-range and premium brands.
“I have been to at least three shops and none of them had Glenfiddich. I asked for Black Label or Chivas Regal, but they did not have that either. They only had some imported wines,” said Rakesh Sinha, a buyer who visited three shops in Star City Mall in Mayur Vihar Phase 1.
By appointing new retail licensees, the Delhi government is trying to pave the way for a range of sweeping reforms to boost the city’s revenue, crack down on the liquor mafia and improve user experience under the new state excise policy. The city has been divided into 32 zones and allotment of licenses is now being done on a zonal basis through which the government has already earned ₹8,917.59 crore. From November 17, liquor shops in the Capital, in a first, will also be able to offer discounts. Stores will get rid of the iron grilles at the front of most liquor vends in the Capital, and allow buyers to browse and purchase the brands of their choice. For this, the shops will be spacious, well lit and air-conditioned to allow customers a walk-in experience under camera surveillance.
Under the new policy, business hours have been fixed from 10am to 10pm, while those at the airport may open round-the-clock.
Some consumers suggested that, in the interim, the Delhi government should geotag its stores on their website or an app so people can locate them.
“Liquor vends near my home are all private ones. Where do we go hunting for government shops now? Most of these shops are in obscure locations. They are also much smaller and have a jail-like grilles, which makes for a very unpleasant shopping experience. I tried looking for the nearest state-run shops, but the excise department’s website had nothing. They should have prepared better,” said Akash Tyagi, a resident of Ashok Vihar in north Delhi.
A senior excise official said the department held a meeting with wholesalers this week and issued specific directions asking them to ensure adequate supply of most liquor brands.
“This is a transition phase, so some issues are bound to occur. But the excise department is trying everything possible to make it a smooth shift. We know the closure of private vends falls during the festive season, particularly on Diwali which is on November 4. From activating our enforcement teams to having meetings with retailers, government agencies and wholesalers, we are taking all possible measures and are closely monitoring the situation,” said the official who asked not to be named.
Delhi has 849 liquor stores, of which 276 are privately run. The rest are run by the Delhi government.
Aseem Diwan, in-charge of Big Way Exports Private Limited, a liquor store inside Star City Mall, said the excise department informed all retailers well in advance about the need to clear stocks by September.
“So, we stopped placing fresh orders a month back. Whatever you see on our shelves is all we are left with. In beer, we only have Kingfisher, and in whiskey we have McDowell’s, Antiquity and Black Dog. We ran this shop for over a decade and now our business is down by over 50%. We used this space on rent, and will vacate it next month,” he said.
Another liquor shop in the mall that was open for more than six years has already been shut. The third shop also had lower-end brands, which ranged between ₹150 to ₹1,000. The situation was similar at a government store at Malviya Nagar.
“Not just retailers, even alcohol brands have put distribution on hold partially, because they are signing fresh agreements with the new retailers who have won the bids for the 32 zones in Delhi. Also, no retailer is placing fresh orders, at least not for premium or mid-range brands,” said the manager of the shop, who is an employee of the government’s Delhi tourism department and did not wish to be named.
Rajeev Malhotra, manager of a liquor store in Savitri Cinema complex in Greater Kailash 2, said they were awarded a zone during the bidding process, and the new store will come in the same location.
“Work will begin next week. The whole shop will be redone. The entrance will have sensor-based sliding doors and the first section will be earmarked just for beer. We have tied up with leading alcohol brands and interior designers to help us out,” he said.
“It will be much better,” he added.
But the transition phase is likely to be rough.
