Stop registration of rum, whisky brands cheaper than Rs 140, suggests Delhi govt panel

The report does not mention what should happen to whiskey and rum brands that are already in the market and are priced below ₹140.

A committee set up by the Delhi government to help augment excise revenue, check malpractices and transform nature of liquor trade in the Capital, has recommended that the state government discontinue the registration of new rum and whiskey brands below priced ₹140 for a 750ml bottle in order to ensure “better quality options”.

The committee also made recommendations aimed at bringing a shift from hard liquor like whisky and rum to soft liquor such as beer and wine. (Representational photo)

“With regard to registration and the eligibility of the brands registered in Delhi it has been observed that the existing licensing fee regime has not been revised since long. One of the mandates of the committee is to transform the nature of liquor trade commensurate to the changing stature of the national capital. The consumer in Delhi needs to be provided with better quality options across different price segments,” said the report.

It further said, “This would require facilitating registration of not only niche low-selling high-value brands in the national capital but also protecting the consumer at entry segment from denial of his choice by way of brand pushing or pushing of brands with negligible national presence. Therefore, the committee is of the view that economy brands of whiskey and rum with MRP up to Rs 140 should be discontinued.”

The report does not mention what should happen to whiskey and rum brands that are already in the market and are priced below ₹140.

Brands, however, need to renew their registration on a yearly basis.

The report has been uploaded on the excise department’s website and currently open for feedback from the public and industry stakeholders till January 21. Once the feedback process is closed, the committee will help the government drafting Delhi’s 2021-22 excise policy, which the Delhi cabinet will then consider for approval.

The committee also made recommendations aimed at bringing a shift from hard liquor like whisky and rum to soft liquor such as beer and wine. In the report, which HT has seen, it has asked for restructuring of duties on soft liquor brands to ensure a drop in their maximum retail price (MRP).

The committee has also recommended that bars in Delhi be allowed to stay open till 3am, serve liquor on rooftops and terraces, allowed to serve full bottles on the table, the legal drinking age be brought down to 21 years, number of dry days be reduced to three a year and that liquor stores be distributed more equitably across the city.

The committee has also recommended that the Delhi government take full charge of wholesale trade of liquor and minimise its presence in retail trade.

Delhi has around 720 liquor stores and around 800 hotels, restaurants and bars with licenses.

Once the feedback process is closed, the committee will help the government drafting Delhi’s 2021-22 excise policy, which the Delhi cabinet will then consider for approval.

The committee was set up in September by deputy chief minister Manish Sisodia, who also holds the finance and excise portfolios, to augment Delhi’s excise revenue, simplifying liquor pricing mechanism, checking malpractices, ensuring equitable access, and helping the government in its ease-of-doing-business policy.

Delhi’s estimated excise revenue for 2021-22 is ₹7,651 crore — up from the previous three-year average of ₹5,068.7 crore, said an official in the finance department.