Cheers Cost More: Gurugram Faces Price Hike As Haryana's New Excise Policy Takes Effect

Haryana's new excise policy, which took effect this week, has led to a 20% increase in liquor prices in Gurugram following the successful auction of 162 zones encompassing 324 liquor vends across Gurugram's east and west regions.

The auctions generated a substantial ₹1,756 crore for the state government, exceeding the reserve prices set by the excise department by 9.4%.

Cheers Cost More: Gurugram Faces Price Hike

Rahul Singh, trustee of the National Restaurant Association of India (NRAI) and founder of Beer Café, emphasized that the policy aims to disrupt cartels and promote inclusivity by facilitating the entry of new players into the market. Under the new provisions, bars can now source from any of the nearest two different L-2 retail vend licensees of their choice, ensuring competitive pricing with restrictions on price demands, as reported by Hindustan Times.

Data from the excise department revealed that five of the top 10 bids for liquor vends are strategically located near the Delhi border, indicating a strategic approach to capitalize on cross-border traffic, according to the Hindustan Times. Further, Amit Bhatia, deputy excise and taxation commissioner for the east region, highlighted upcoming auctions slated for June 14, including 20 zones in Gurugram's east and two in the west, which are expected to further boost revenue.

Jitender Dudi, deputy commissioner of excise and taxation for Gurugram's west region, anticipated an increase in footfall at liquor stores with the onset of the wedding season. He noted that while many shops have retained their previous owners, the new policy provisions are set to stimulate market dynamics and foster healthy competition among vendors.