Liquor volumes may take 20% hit in FY21 due to closed shops, tax hikes

It could be the sharpest fall in four years

The Indian-made foreign liquor (IMFL) market could decline by as much as 20 per in FY21 because of issues around distribution as well as tax hikes by states, executives at top liquor firms have told Business Standard.
 

This will be the sharpest fall in four years, they say, as various states increase tax on alcohol.
 

On Wednesday, Uttar Pradesh, Karnataka, Rajasthan and Tamil Nadu increased taxes on alcohol by 10-15 per cent, joining Telangana, West Bengal, Delhi and Andhra Pradesh, who had announced tax hikes of 16-75 per cent on liquor on Tuesday.
 

The IMFL market had last fallen by