Delhi's retail liquor trade witnesses significant decrease, concerns arise for FY 2023-24

Delhi's retail liquor trade has experienced a substantial decline in the last two quarters of the fiscal year 2022-23 (October-December and January-March) compared to the first quarter (April-June) of 2022. A report by the Confederation of Indian Alcoholic Beverage Companies (CIABC) highlights the impact of the implemented excise policy, which has now been scrapped, as a contributing factor to this downward trend.

"The sales have been gradually declining and now entered into negative territory. This suggests an immediate requirement for policy intervention, otherwise, there is a possibility that sales may begin to decline in the FY 2023-24," warned the CIABC report.

In July 2022, the Delhi government decided to withdraw its newly introduced excise policy following a recommendation made by Lieutenant Governor VK Saxena to initiate a CBI investigation into alleged irregularities associated with its implementation.

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

Despite the challenges posed by the alterations in the excise policy and the unavailability of several brands, Delhi managed to sustain a healthy annual growth rate of 36 per cent compared to previous years, according to the CIABC report.

"However, upon closer examination, a significant portion of this growth can be attributed to the first quarter of the 2022-23 period when trade schemes and promotions were implemented to clear existing stock in anticipation of the upcoming changes in the excise policy," highlighted the report.

The first quarter of 2022 recorded a remarkable 263 percent growth in liquor sales, as stated in the CIABC report.

Following that, there was a 28 percent growth in the July-September quarter and a 19 per cent growth in the October-December quarter.

However, the January-March 2023 period witnessed a concerning negative growth of 14 per cent.

"When compared to the first quarter growth of 263 percent in the April-June quarter of 2022, a massive decline of 19 percent and minus 14 percent was seen in the last two quarters of the fiscal year 2022-23 (October-December and January-March)," the report stated.

(With Inputs from PTI)