According to a report by the Confederation of Indian Alcoholic Beverage Companies (CIABC), the retail liquor trade in Delhi has dropped sharply in the first quarter of FY 2022-23, compared to when the now-scrapped excise policy of the city government was in place. The new excise policy of the Delhi government was withdrawn in July 2022 after Lieutenant Governor V K Saxena recommended a CBI probe into alleged irregularities in its implementation.
Although Delhi maintained a healthy annual growth rate of 36% year-on-year, 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. 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, liquor sales recorded a massive 263% growth in the first quarter of 2022, followed by a 28% growth in the July-September quarter and a 19% growth in the October-December quarter. However, the January-March 2023 period saw a negative growth of 14%.
The last two quarters of 2022-23 showed a sharp decline of 19% and minus 14%, respectively, compared to the first quarter growth of 263% in the April-June quarter of 2022. The CIABC report claimed that urgent policy intervention was needed to avoid the decline in sales.
No comments from the Delhi excise department were immediately available on the report findings. Despite the disruptions related to the excise policy changes and non-availability of many brands, Delhi recorded a healthy growth rate. However, the report highlights that urgent intervention is necessary to maintain the growth rate and prevent a decline in sales.
