Scam impact? Delhi's retail liquor trade records sharp decline

New Delhi: The retail liquor trade in Delhi has recorded a sharp decline as compared to the first quarter (April-June) in 2022, when the now-scrapped excise policy of the city government was in place, according to a report prepared by the Confederation of Indian Alcoholic Beverage Companies (CIABC).

The new excise policy of the Delhi government was withdrawn in July 2022 after Lieutenant Governor V K Saxena recommended a CBI probe into alleged irregularities in its implementation.

The policy was finally wrapped up on August 31 last year. The old policy under which Delhi government corporations opened liquor vends in the city was rolled out on September 1, 2022.

Despite all the disruptions related to the excise policy changes and non-availability of many brands, Delhi maintained a healthy annual growth rate of 36 percent year on year, the CIABC report said.

However, a closer analysis shows that much of this growth is attributed to the first quarter of 2022-23, when various trade schemes and promotions were run to liquidate the stock in view of the impending changes in the excise policy, it added.

"Thereafter, sales growth has been trending down, reaching a negative range. This indicates the need for urgent policy intervention, in the absence of which the sales may start dipping in FY 23-24," the report claimed.

According to the CIABC data, the liquor sale recorded a massive 263-per cent growth in the first quarter of 2022.

It was followed by a 28-per cent growth in the July-September quarter and a 19-per cent growth in the October-December quarter.

However, the January-March 2023 period recorded a negative growth of 14 per cent, the data showed.

The last two quarters of 2022-23 -- October-December and January-March -- showed a sharp decline of 19 per cent and minus 14 per cent, as compared to the first quarter growth of 263 per cent in the April-June quarter of 2022.

No comments from the Delhi excise department were immediately available on the report findings.

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