The policy, approved by the Haryana Cabinet, has raised excise duties and bottling fees, leading to price hikes of up to 55% for Indian beers and 45% for imported ones. Indian Made Foreign Liquor (IMFL) and imported spirits face 15-20% increases, impacting consumers and businesses alike. The state aims to boost revenue to 14,064 crore while regulating the liquor trade, but the steep costs have sparked widespread concern.
Steep Price Hikes Hit Consumers
The new policy has dramatically increased liquor costs across categories. IMFL brands like Royal Stag and premium spirits like Glenlivet see price rises of 15-20%, with a bottle of Absolut Vodka climbing from 1,200 to 1,800. The excise duty on country liquor has risen from 78 to 82 per proof litre, and bottling fees for beer supplied in Haryana have increased from 11 to 12 per bulk litre. These changes, aimed at aligning prices with neighboring states, have left consumers, particularly in urban hubs like Gurugram, reeling from the sudden spike.
Revenue Goals vs. Consumer Backlash
Haryana’s government projects the policy will generate 14,064 crore, building on last year’s 12,700 crore collection. Measures like doubled license fees for distillers and stricter QR code-based tracking aim to curb illegal sales and promote local brands. However, liquor vendors fear reduced sales during the peak summer season, as consumers may turn to cheaper alternatives or cross-border purchases in Delhi.
Impact on Businesses and Future Outlook
Bars and restaurants face higher costs, with license fees for five-star hotel bars rising from 25 lakh to 30 lakh annually. The policy’s focus on transparency and quality control is commendable, but the hospitality sector worries about declining patronage. As Haryana navigates this revenue-driven overhaul, balancing consumer affordability and fiscal goals remains a challenge.
