Haryana's new excise policy spurs 20% hike in liquor prices in Gurugram

Haryana government has successfully auctioned 162 excise zones in Gurugram, garnering Rs 1,756 crore

Haryana’s newly implemented excise policy has led to a 20 per cent rise in liquor prices in Gurugram.

This policy, which came into effect on June 12, includes an increase in liquor duties that had led to the overall rise in liquor prices.

This comes after the successful auction of 162 excise zones in Gurugram — 83 in the west and 79 in the east. The highest bid received was Rs 50.57 crore for a liquor vend on Golf Course Road, followed by Rs 48.28 crore for a vend at Bristol Chowk. Notably, five of the top ten bids for liquor vends are located near the Delhi border.

The auctions garnered Rs 1,756 crore for the Haryana government, representing a 9.4 per cent increase above the reserve prices (the minimum price at which the department auctions a vend) set by the excise department.

What will June 14 liquor vend auctions yield?

Additional auctions are scheduled, with two zones in the west and 20 in the east set to be auctioned on June 14.

Despite the price hike, consumers from Delhi and Noida continue to flock to Gurugram for their liquor purchases, according to a report by Hindustan Times. While the prices have increased, customers find more variety in liquor in the city, compared to the national capital where stocks are often low.

What does Haryana new excise policy entail?

The Haryana government’s new excise policy's main objective is to introduce measures that prevent vendors from monopolising the liquor market and to establish a transparent system for the allotment of retail outlets and to provide good quality liquor at reasonable prices.

As per the new policy, consumers may now have to pay an extra Rs 5 per bottle of country liquor and Rs 20 per bottle of beer. Foreign liquor prices have increased by 5 per cent, according to a report by the Times of India.

The policy allows bars to source supplies from any three liquor shops with L-2 retail vend licence, while previously establishments were limited to the nearest two shops. It also ensures that no licensee can charge more than 10 per cent above the minimum retail sale price fixed by the policy.

The policy also allows for a maximum number of 2,400 L-2/ L-14A (retail licences) vends.