Delhi’s retail liquor trade records sharp decline

The retail liquor trade in Delhi has recorded a sharp decline as compared to the first quarter (April-June) in 2022, when the now-scrapped excise policy of the city government was in place, according to a report prepared by the Confederation of Indian Alcoholic Beverage Companies (CIABC).

The new excise policy of the Delhi government was withdrawn in July 2022 after Lieutenant Governor V K Saxena recommended a CBI probe into alleged irregularities in its implementation.

The policy was finally wrapped up on August 31 of last year. The old policy under which Delhi government corporations opened liquor vending machines in the city was rolled out on September 1, 2022.

Despite all the disruptions related to the excise policy changes and the non-availability of many brands, Delhi maintained a healthy annual growth rate of 36 per cent year over year, the CIABC report said.

However, a closer analysis shows that much of this growth is attributed to the first quarter of 2022–23, when various trade schemes and promotions were run to liquidate the stock in view of the impending changes in the excise policy, it added.

“Thereafter, sales growth has been trending down, reaching a negative range. This indicates the need for urgent policy intervention, in the absence of which sales may start dipping in FY 23–24,” the report claimed.

According to the CIABC data, the liquor sale recorded a massive 263-per cent growth in the first quarter of 2022.

It was followed by a 28-per cent growth in the July-September quarter and a 19-per cent growth in the October-December quarter.