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Delhi’s liquor policy has seen several changes, garnering controversy and confusion over the years. It has even led to arrests and business losses. The latest flip-flop arrived last week. mint Explains development.
What is the history of Delhi’s liquor policy?
In November 2021, the Aam Aadmi Party government of Delhi privatized liquor sales, largely to raise revenue. By August 2022, the policy was scrapped. A CAG report later accused the party of giving undue favors to liquor licensees, leading to its demise. 2,000 crore in loss to the exchequer. This led to the closure of over 400 private stores, and a return to the days of shops being run by four firms: the Delhi State Industrial and Infrastructure Development Corporation, the Delhi Tourism and Transportation Development Corporation, the Delhi State Civil Supplies Corporation, and the Delhi Consumer Cooperative. Wholesale Store.
What is the most recent development?
On 10 January, four government agencies met with alcohol distributors and private associations to implement a new ‘fixed-ordering’ system, despite the Election Code being in force. The circular handed over to distributors said that Delhi lacks a diverse range of affordable liquor, especially whiskey, and that the excise department aimed to stop promotion of lesser-known brands. It cited research from 2017–2019, which alleged “collusion” and “brand pushing” of lesser-known brands and Punjab-made whiskeys. The Excise Department saw this as evidence of malpractice.
Read more: Mint Primer | Telangana liquor crisis: What just went wrong?
Which Punjab made brands were targeted?
The circular has named several whiskey brands from Punjab that are being sold in the capital city. The list of “disproportionately promoted” brands includes Royal Green (advertising spirits); All Seasons (Oasis Group); White and Blue (Alcobrew); Aristocrat Premium (Jagatjit Industries), and Dennis Special Gold (Rock & Storm Distilleries Pvt. Ltd.).
What did the state excise department suggest?
Spherical, accessed by mintThirteen whiskeys from five alcohol companies were named—Alcohol Blenders, Diageo, Radico Khaitan, Pernod Ricard India, and Ad Spirits—which were popular. The list was taken from national and local sales, it said. Bringing in these brands could prevent the “brand threat” of obscure whiskeys. The department proposed a points-based system for bulk liquor orders, giving priority to brands with strong sales outside the National Capital Region (NCR) rather than those in the city.
Read more: Delhi government delays controversial point-based liquor purchase system
How did the industry respond?
The Delhi Distillers and Brewers Association argued that the new system favored larger firms. A Punjab industry player argued that the system would make it impossible for new or local brands. Due to the backlash, the Department of Excise, in a meeting chaired by the Additional Chief Secretary, addressed the concerns. On January 20, the department set aside rules that were originally scheduled to be implemented from January 22. It has now delayed the new system until all representations have been reviewed.
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