You are here: Home » Economy & Policy » News
Business Standard

Liquor makers object to Delhi govt's excise policy recommendations

Four liquor manufacturers raised objections to the Delhi government's new excise policy recommendations and warned that these would bring in cartelization besides hitting the government's revenue.

Topics
Liquor firms

Press Trust of India  |  New Delhi 

alcohol, liqour, drinks, Heineken, Kingfisher, UB, sober curious

Four liquor manufacturers on Sunday raised objections to the Delhi government's new excise policy recommendations and warned that these would bring in cartelization besides hitting the government's revenue.

The Delhi government had recently received around 10,000 suggestions on the recommendations of its expert committee on several issues, including opening more private liquor vends and reducing the legal age for drinking from 25 to 21 years.

The excise department of the city government had sought comments and suggestions from the general public on the report of the expert committee by January 21.

In a letter to Delhi Chief Minister Arvind Kejriwal, four Indian liquor companies -- Radico Khaitan Limited, Modi Illva India Pvt Ltd, Alcobrew Distilleries India Pvt Ltd and Jagatjit Industries Ltd - opposed any change in free pricing criteria and registration of brands.

The companies claimed that a number of key recommendations were unhealthy and would result in restrictive trade practices".

While suggesting that there should be no change in the free pricing criteria cut off, the letter stated that the changes will disrupt 80-90 per cent of the Indian-made foreign liquor (IMFL) market.

The proposed change to registration of brands with retail price of or less than Rs 600 per bottle for 750 ml and the sales volume of 1 lakh minimum in states, except Delhi, among others, is extremely unfair, one-sided and violative of principles of free competition.

"This will disrupt 80-90 percent of the current IMFL market and bring no revenue to the government. It will only create a monopoly of few companies and bring in cartelisation. It will be a big setback to the retail--both corporation and private, the letter said.

The letter was signed by Radico Khaitan's vice-chairman and managing director Abhishek Khaitan, Jagatjit Industries' chief restructuring officer Roshini Sanah Jaiswal, Modi Distillery's director Abhishek Modi, and Alcobrew Distilleries' chairman and managing director Romesh Pandita.

The group also opposed the recommendation of closing government-owned vends, saying it would hinder the availability of genuine brands at right price to consumers.

The consumer is not overcharged or sold non-duty paid/spurious stocks, which is always a matter of concern, especially wherein Delhi is surrounded by three states and the borders of NCR are porous," they added.

The expert committee had recommended that the government vends be privatised and minimum age to buy/drink liquor also be reduced to 21 from 25 years - in line with cities of Gurgaon, Noida, Faridabad and Ghaziabad in the National Capital Region (NCR).

It had also recommended minimising the Delhi government's presence in the retail liquor sector and eventually exiting it altogether.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, January 31 2021. 20:20 IST
RECOMMENDED FOR YOU
.