Liquor shops in U.P. offer bumper discounts in spirited race to clear stock
U.P. excise commissioner says district excise officers have been instructed to remove banners or posters about discounts or offers as this is prohibited
: Liquor vendors across the state are offering bumper discounts in a spirited race to clear their existing stock before March 31, 2025. Though big discounts on footwear and clothing are common, they are a rarity for liquor.
The move comes days before the new excise policy comes into effect from April 1. Under the new policy, 80% of the licence holders have been replaced as the e-lottery system has been adopted for allocation of liquor licences.
In Uttar Pradesh districts that are part of the National Capital Region (NCR) like Gautam Buddha Nagar (Noida) and Ghaziabad, liquor vendors are making a ‘one plus one’ offer, which amounts to almost 50% discount, attracting a beeline of customers. In the state capital Lucknow, vendors are offering discounts ranging from ₹100 to ₹150 per bottle, along with ₹30 to 40 discount on beer.
U.P. Liquor Vendors’ Welfare Association spokesperson Devesh Jaiswal said, “There is ‘no buy one get one offer’ in Lucknow. In the state capital, some liquor vendors are offering discounts on certain items as per their remaining stock. Major discount is being given on English liquor as it has a vast range and on beer. Some model shops are offering flat cash discounts, for example a beer can of ₹130 is being sold at ₹100. A discount of ₹150 per full bottle is being offered while ₹80 is being discounted on a half bottle and ₹30 discount is being offered on a quarter bottle.”
“One plus one offer is mostly offered in Noida where certain liquor shops do business of ₹25 lakh to 30 lakh per day. They have to stock accordingly and hence; they are now offering discounts to finish their stock before March 31. This time around 80% of the allottees have been changed in the e-lottery system for allocation of the liquor shops,” Jaiswal added.
U.P. excise commissioner Dr Adarsh Singh said, “This is not something which the department is condoning and all the shops must function as per the norms. I have already had a meeting with district excise officers and instructed them to remove any banners or posters outside liquor shops about discounts or offers as this is prohibited. We have also (asked) the district excise officers of all the districts from where we have received such complaints to take strict action against such vendors. However, our revenue is not being affected by this as our excise duty component is received by the department as soon as the bottle leaves a distillery.”
The e-lottery system for allocation of liquor shops was brought back after a gap of seven years by the state government. The Uttar Pradesh government’s excise policy for 2025-26 aims to realise ₹64,000 crore revenue as it introduces composite shops, looks to boost tourism with vineyards and breweries, puts in place an e-lottery system for allotment of liquor shops across the state and plans low alcoholic bars in select cities. Under the new policy, beer will now be sold at either composite or country made liquor shops only. The new policy provides for guided tours of breweries and wineries in the state.
An investigation by Hindustan Times across prominent areas like Mahanagar, Parivartan Chowk and Rahim Nagar in Lucknow revealed that several model shops are running aggressive discount campaigns. Banners and posters placed outside these shops promote various offers, encouraging customers to purchase liquor at lower prices before the deadline ends.
At several model shops, full liquor bottles are available at ₹150 less than the maximum retail price (MRP), while half bottles are discounted by ₹80 and quarter bottles by ₹30. Beer lovers can save between ₹20 and ₹40 per bottle, depending on the brand.
Vicky Jaiswal, a model shop owner in Mahanagar, said, “We must clear the stock by March 31, or we risk losing our property. I have stock worth around ₹30 lakh, and if we fail to pay the pending amount, the authorities will seize the property papers we submitted as a guarantee.” Jaiswal, whose family has been in the liquor business for six generations, revealed that their network includes around 90 liquor shops across Uttar Pradesh.
“We are left with no choice but to offer discounts. Every shop owner in the city is doing the same to avoid massive losses,” he added.
The profit usually varies based on the brand and bottle size. According to shopkeepers, premium liquors have a smaller percentage of profit, while mid-range products under ₹1,200 see a good percentage of profit with around up to 8%.
A model shop owner explained, “Cheaper brands offer more flexibility for discounts. Premium liquor has a smaller profit margin, so the discounts are less, but for beers and mid-range liquor, we’re offering substantial reductions to clear out the stock.”
Mahesh Singh, a customer at the Mahanagar model shop, said he bought an entire carton of beer.
“I’m getting beer for ₹120 instead of MRP price of ₹160. It’s a great opportunity to save, and I’m making the most of it,” he said.
At the Parivartan Chowk model shop, another customer, Suraj said, “I bought six or seven bottles of liquor, saving ₹150 per bottle. It’s a steal.”
An excise official, requesting anonymity, revealed that if shop owners fail to clear their stock in time, the financial burden could fall on area inspectors, the district excise officer, and other officials.
“For instance, if a shop’s license fee is ₹20 lakh, the security deposit is only ₹2 lakh, about 10%. If the shop fails to release its stock, the pending amount becomes the liability of excise officials,” the official said.