Gurugram Liquor Shops Increase Prices During Festive Season Amidst Political Chaos in Delhi’s Alcohol Market

Gurugram Liquor Shops Increase Prices During Festive Season Amidst Political Chaos in Delhi’s Alcohol Market

Due to a significant shortage of alcohol in Delhi’s market, consumers from Delhi as well as Noida are making their way to Gurugram to satiate their craving for well-known alcohol brands. The contentious excise policy in Delhi as well as the denial of sale permits for major companies are blamed for the lack of prominent brands in the city’s stores. Retailers in Gurugram were able to take advantage of the problem and deliberately raise the selling price of alcohol.

Rising Prices, Diminishing Discounts

For many years, Gurugram has served as the favored liquor-shopping location for National Capital Region (NCR) inhabitants. Residents of Delhi and Noida used to stock their liquor cabinets with beverages from Gurugram’s establishments because of the tempting offers, discounts, as well as comparably reduced costs. However, in recent weeks, there has been a significant shift in this picture.

Popular brands have been missing from Delhi’s shelves as a result of confusion with regard to the city’s liquor regulations, as well as an increase in demand over the festive season. As a result, Gurugram’s shops have not only discontinued all discounts, but have additionally increased prices dramatically, sometimes by as much as 33% compared to what they had been just two months ago.

For instance, a bottle of Jack Daniel’s that was once sold for INR 1,800 now sells for INR 2,300, while the price of Black Label increased from INR 1,800 to INR 2,200. Jameson, which was formerly offered for INR 1,200, is now going for INR 1,600, and Glenlivet 12, which was once offered for INR 2,900, is now going for INR 3,400. Even beer prices have not been spared; a 330ml Kingfisher Premium bottle, which was originally 90 rupees, is now sold for Rs. 120, and Corona is now 200 rupees, up from INR 165.

Delhi’s Denial Amidst Empty Shelves

Despite the apparent scarcity as well as price increases, Delhi excise officials have disputed that there is a shortage of alcohol in the city. While this is happening, Gurugram liquor store owners, like Mukesh Yadav of a location on Golf Course Extension Road, have plans to raise prices even higher. Yadav said, this is the time of year when alcohol sales are at their maximum. They have already increased rates by approximately thirty percent.

For their celebrations, people make bulk purchases. Next week, there will be new supply, and they may sell for more in accordance with demand. During the first week of November, prices are probably going to rise even further.

Shifting Market Dynamics

Customers in Delhi have been forced to go beyond state lines, but the shortage has also changed the dynamics of the local market. The majority of the shelves in Delhi’s stores are now empty, there are few brands accessible, and there are hardly any premium selections. Craft gins, single malts, expensive wines, as well as international beers have all become rare items. Even with the recent price increases, the few types that are currently in stock are priced similarly to those that are available in Gurugram.

Consumers are left dealing with exorbitant pricing as well as a lack of options as the impasse on excise policies continues. Retailers and customers are on edge as the holiday season approaches since it is unclear whether Delhi’s alcohol market will regain lost territory or if Gurugram is going to continue to benefit from this windfall.

Delhi’s Liquor Woes Deepen Amidst Controversial Excise Policy

The upheaval surrounding Delhi’s liquor market is not going to go away anytime soon, and it is mostly due to the city’s divisive excise policy, which was due to come to an end on September 30. Although the government issued a notification allowing licensees to request a six-month extension after paying a charge, several groups, particularly wholesalers, discovered themselves entangled in a red tape web. It was necessary to obtain new licenses, which needed substantial documentation and took a week to complete.

To make matters worse, the notification was made public on September 29, just one day before the policy’s expiration, and was then followed by a long weekend. Due to the time, there were serious shortages in many bars, restaurants, as well as pubs, especially for premium brands. Since most wholesale dealers had not yet started supplying full volumes again, these establishments, which normally sell luxury products in small quantities, quickly found that their supplies had run out.

Major Companies Shun Delhi’s Market

The obvious absence of major corporations from Delhi’s liquor sector can be blamed for a sizeable amount of the current situation. Applications for selling licenses from industry heavyweights like Pernod Ricard, Indospirits, and Brindco were turned down by the state excise department in April. These denials were the result of continuous inquiries into the excise policy for 2021–2022, which made well-known brands even more difficult to find.

The manager of a bar on Golf Course Road, Ram Kumar, emphasized the rise in popularity of upscale brands like Glenlivet, Jack Daniel’s, Jameson, as well as vodka. He pointed out that most purchasers now come from places other than Delhi. Buyers used to request discounts in the past, but not anymore. They no longer offer discounts since customers are willing to pay more for their preferences, according to Kumar.

Delhi Residents Forced to Flock to Gurugram

Delhi residents, like Saurabh Pathak from New Friends Colony, expressed their dissatisfaction with the absence of well-known brands in the city. Hardly any well-known brands are sold in Delhi. Stores in Gurugram have raised their prices. Even so, they are left with no choice but to buy, considering Delhi’s shelves are vacant, Pathak complained.

In order to clarify the problem, Vinod Giri, Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), said that some premium brands were missing from Delhi’s retail shelves. “Premium Indian single malt brands have stayed away from Delhi due to an exorbitant license fee of a minimum of ₹25 lakh per year… Many large companies have also become cautious due to their previous experience during the excise policy transitions over the past couple of years,” Giri explained.

Customers in Delhi are faced with few options as well as elevated pricing as a result of bureaucratic obstacles and the effects of denied licensing applications. The conclusion of these ongoing issues is still unknown, leaving Delhi residents in a precarious situation and further pushing them across the state’s borders to get their alcohol needs.

Delhi’s Liquor Market Saga: Political Battles Fuel Gurugram’s Gains

The liquor market in Delhi is still embroiled in a political squabble that has had a considerable impact on the city’s residents as well as businesses. The instability can be linked back to the investigations into the 2021-22 excise policy, an initiative aimed at overhauling the city’s liquor trade.

However, political issues hampered this ambitious strategy, which was eventually scrapped in July last year following a clash between the Centre and the Delhi government led by the Aam Aadmi Party (AAP). As a result, the creation of a new excise policy has been stalled for more than a year, resulting in the periodic extension of the 2021-22 policy in an effort to fulfil the regulatory void.

Delhi’s Losses, Gurugram’s Gains

Gurugram has unquestionably benefited from the prolonged instability in Delhi’s liquor market. As a result of Delhi’s lack of a streamlined excise regime, brands are still difficult to find, thus citizens have started buying their alcohol in Gurugram, which is nearby. The manager of a liquor store in Gurugram, Kumar, echoed the views of many local retailers when he said, “We can earn till the excise policy in Delhi is not streamlined and brands are available.”

An anonymous Delhi excise official declared that there has been no lack of liquor stocks in the city, refuting claims of apparent shortages made there. However, Delhi residents actually experience an entirely distinct reality, with barely any options as well as limited stores. The gap between official claims as well as actual consumer experiences has only made the problem worse and accelerated the exodus of customers to Gurugram.

Gurugram’s Liquor Boom Amidst Delhi’s Woes

Gurugram’s liquor sector is expanding significantly, in contrast to Delhi. Ravinder Singh, the deputy commissioner of excise and taxation in Gurugram (east), emphasized the aggressive steps local government has made to provide a wide variety of alcoholic beverage options. “We keep an eye on the amount of brands that are offered and make sure that people get a wide selection of alcoholic beverages and are not pushing one specific brand. Indian Made Foreign Liquor (IMFL) and Indian Made Liquor (IFL) sales have increased by 35%, according to Singh.

Another advantage that Gurugram has over Delhi was discussed by Amit Bhatia, deputy commissioner of excise and taxation in Gurugram (west). He stressed that Haryana does not set a maximum retail price for alcohol, therefore stores in Gurugram are free to sell it for whatever amount they like without providing any kind of reduction. In comparison to Delhi, Gurugram’s liquor industry is now more competitive as well as reasonably priced, according to the situation at hand, because to this pricing flexibility.

The Continuing Struggle and Uncertain Future

Delhi’s liquor market continues to be caught in the crossfire of the political conflict between the Bharatiya Janata Party (BJP) as well as AAP parties. Both businesses and their consumers are perpetually unsettled as a result of the switching between old and new excise policies.

Gurugram has received a surprise revenue boost as a result of the dearth of a comprehensive as well as stable policy framework that has not only hindered businesses but also driven customers away from Delhi’s liquor industry. Residents of Delhi are expected to keep traveling across state lines to Gurugram until the political turbulence clears as well as a clear regulatory course is created, leaving Delhi’s liquor sector scrambling to make up the ground that was lost.