Delhi: No discounts on MRP of liquor anymore, says govt

The Delhi government on Monday announced the discontinuation of the discounts/rebates/concessions on MRP of liquor. 

In an implementation of its new excise policy, the Delhi government had set the maximum retail price of each liquor brand and its make, and retailers were free to charge anything within that MRP, but not beyond that.

Following this, many vendors are offering a heavy discount (around 30-40%) on Indian as well as imported brands by adopting competitive pricing as they were also looking to exhaust their stock by the end of March, before their license renews. 

This led to liquor stores in several areas of Delhi witnessing long queues of tipplers.

Observing the situation, the government said in its new order: “It has been brought to the notice of the excise department that as a result of the discounts being offered by the licenses through their retail vends, there are instances reported of large crowds gathering outside the liquor stores leading to law and order problem.”

“It is also to be kept in mind that the Covid situation is not yet over and the danger of Covid-19 still persists and therefore the huge crowds is likely to aggravate the rise in the Covid cases in Delhi,” it added. 

The government also noted that the discounting is also leading to unhealthy market practices deployed purely for short-term business gains.

In view of this, it ordered the liquor vendors to discontinue giving discounts on the MRP of liquor. “All licensees shall neither give concession rebate or discount on the MRP of liquor,” read the order. 

Under the new excise policy, the liquor business in the national capital was completely handed over to private players wherein they can open 849 spacious and swanky vends in 32 zones having an area of at least 500 square metres. A total of 552 liquor shops out of the total permitted were opened till 28 January.

The state government had on 1 February informed Delhi High Court that its Excise Policy of 2021 will continue beyond March 2022 and there will not be any "new change" in it for the next financial year.