Only govt-run liquor shops likely in Delhi’s new excise policy: Big changes ahead for drinkers

Economic Times
Economic Times
2M ago
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Delhi's new excise policy will mandate only government-run liquor stores, aiming to enhance consumer experience and promote social responsibility. This matters as it shifts the retail landscape and addresses past corruption issues.
Only govt-run liquor shops likely in Delhi’s new excise policy: Big changes ahead for drinkers
A What happened
Delhi's upcoming excise policy draft is poised to maintain a structure of only government-run liquor stores, moving away from private retailers. The government plans to modernize these outlets, ensuring they are larger and better designed, ideally located in malls and shopping complexes. Additionally, the policy aims to relocate liquor shops away from residential areas, schools, and religious sites to promote social responsibility. A significant change includes revising the profit margin system, which currently discourages retailers from stocking premium brands. This overhaul is intended to diversify product offerings and ensure fair pricing. The new policy follows the controversial previous excise policy that allowed private players, which faced corruption allegations and was subsequently rolled back. The draft will undergo public consultation after approval from the Delhi cabinet and Lieutenant Governor.

Key insights

  • 1

    Government-Run Model Retained: The new policy continues with government-operated liquor stores, eliminating private competition.

  • 2

    Focus on Modernization: Plans include larger, better-designed outlets to enhance consumer shopping experiences.

  • 3

    Profit Margin Overhaul: The policy aims to revise profit margins to encourage stocking of premium liquor brands.

Takeaways

The new excise policy in Delhi reflects a significant shift towards government control in liquor retail, aiming for modernization and social responsibility while addressing past issues of corruption.

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