Delhi's Liquor Policy Under Fire From Domestic Premium Spirits Producers

Domestic premium liquor manufacturers are urging the Delhi government to revise its excise policy, claiming it unfairly favors imported alcohol brands over local products. The high brand-license fees imposed on Indian spirits have effectively barred numerous high-quality local whiskies, gins, wines, and beers from entering Delhi's market.

Industry representatives argue that the current policy creates significant financial barriers for premium Indian spirits trying to compete in the capital. While domestic whisky brands must pay ₹25 lakh in brand-license fees per brand, imported (Bottled in Origin) products face substantially lower charges, ranging between ₹50,000 and ₹3 lakh per brand.

"The Delhi excise policy is skewed in favor of imported liquor. For Indian premium brands with lower volumes, the cost of entry is too high," said Anant Iyer, Director General of the Confederation of Indian Alcoholic Beverage Companies. The industry has been consistently advocating for fee parity between domestic and imported brands.

The fee structure varies across different categories of Indian spirits: ₹25 lakh for whisky, ₹12 lakh for rum, gin, and vodka, ₹8 lakh for brandy, and ₹15 lakh for beer per brand. In stark contrast, imported liquors can register five brands for just ₹15 lakh with an additional charge of ₹50,000 per extra brand. Imported wines and liqueurs pay only ₹7 lakh for 10 brands with a similar additional charge structure.

This disparity not only restricts consumer access to quality Indian liquor in Delhi but also drives buyers to neighboring states, resulting in revenue losses for the Delhi government. Industry experts warn that this policy framework undermines both local producers and consumers seeking diverse options in the market.

Iyer emphasized that aligning license fees would promote fair competition while supporting government initiatives like Make in India and Aatmanirbhar Bharat. He pointed out that the industry supports approximately 50 lakh farmers, employs 20 lakh workers, and contributes around ₹3 lakh crore in taxes annually to the national economy.

As pressure mounts for policy reform, stakeholders hope the Delhi government will reconsider its approach to create a more level playing field that allows domestic premium spirits to compete fairly against imported alternatives.