Gurugram residents are paying 33% more for booze: Here's why
What's the story
Gurugram liquor retailers are cashing in on the ongoing shortage of popular alcohol brands in Delhi. Thanks to Delhi's controversial excise policy and the rejection of sale licenses for major companies, there's a scarcity of sought-after brands in the capital.
As a result, customers from Delhi are flocking to Gurugram for their booze needs, prompting retailers to hike prices significantly.
Festive season too has skyrocketed the demand, and retailers are charging up to 33% more than just two months ago.
Details
Popular brands witness major price hikes
As per Hindustan Times, a bottle of Jack Daniel's that used to sell for Rs. 1,800 now goes for Rs. 2,300, while Black Label has jumped from Rs. 1,800 to Rs. 2,200.
Jameson has risen from Rs. 1,200 to Rs. 1,600, and Glenlivet 12 from Rs. 2,900 to Rs. 3,400.
Even beer prices have climbed, with a 330ml bottle of Kingfisher Premium now retailing for Rs. 120 instead of Rs. 90 and Corona fetching Rs. 200 instead of Rs. 165.
What Next?
Delhi's excise policy at the heart of the issue
The main culprit behind the current situation is Delhi's contentious excise policy. Initially set to expire on September 30, the policy was extended after licensees were allowed to apply for a six-month extension upon paying a fee.
However, wholesalers need fresh licenses, which require extensive documentation and time to process. This has led to a shortage of liquor stocks in Delhi, especially premium brands.
Insights
Major companies absent from Delhi's liquor market
Adding to Delhi's liquor market woes is the absence of major companies like Pernod Ricard, Indospirits, and Brindco.
Their sale license applications were rejected by the state excise department in April due to ongoing investigations into the 2021-22 excise policy.
This has created a huge demand for these brands in Gurugram, where retailers have seized the opportunity to raise their prices.