Liquor trade in Punjab suffers despite increase in beer sales

After the new excise policy came into force this year, the liquor trade in Punjab is facing a peculiar problem. Though the beer sales have increased, liquor contractors say trade in India-Made Foreign Liquor (IMFL) is down in the dumps.

Statistically, beer sales are up by around 416 per cent in the state as compared to last year's figures. However, when it comes to IMFL and country liquor, the contractors say that they are unable to sell their monthly quota fixed by the state government. Some of them haven't been able to sell any liquor for a couple of months.

Some contractors said the customers, too, had added to the woes by offering Rs 50 instead of Rs 85 for a bottle for country-made liquor. "But we can't afford to sell at such low rates," a liquor contractor said.

Under the new excise policy, the state government increased the quota of country liquor from 440 lakh proof litres to 600 lakh proof litres. For IMFL, the quota was raised by 100 lakh proof litres, from the earlier 200 lakh proof litres.

An excise department official said the quota was increased keeping in mind the expected rise in demand. "However, with contractors supposed to be issued the increased quota, irrespective of sales, many said they paid the requisite fee but did not take the whole lot, as they are yet to sell the leftover stock.''

A Haryana-based contractor with liquor vends across the state including 25 in Ludhiana, said he had a backlog of more than a month. "I did not pick more stock, though I paid the money for the new stock," he added. Another Ludhiana-based contractor said that the backlog stretches from 90 to 100 days. "I am not able to sell the required quota".

The contractors countered by saying they can show the unused liquor permits to prove they are picking new stocks on time.

However, with half the fiscal gone, liquor contractors are now pinning all hopes on the festival season to make up for the loss.