Despite Liquor License Extension By A Month, More Private Outlets In Delhi Are Shutting Down

There is more confusion than clarity among liquor license holders in Delhi as many are still unclear if and when can continue doing business.

The government had last week extended retail and wholesale licences issued under Excise Policy 2021-22 up to August 31.

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Six zonal licensees surrendered their licenses

Despite this, as many as 126 liquor shops closed down in Delhi on Wednesday as six zonal licensees surrendered their licenses.

The six surrendered zonal licenses mean that there will be no liquor shops in areas like Anand Vihar, Shakarpur, Jhilmil, Paharganj, Rohini E, Chandni Chowk, Sarita Vihar, Najafgarh, Greater Kaliash, and Daryaganj, among others.

This will further bring down the number of 468 liquor vends that were operational before July 31 in Delhi to 343.

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Under the excise policy, Delhi has been divided into 32 pre-defined zones, with each having a maximum of 27 shops.

Since March 31, a total of 16 zonal licenses have been surrendered.

Can't do business like this

Licensees are blaming the lack of clarity in the policy on the part of the government, making it hard to do business.

"There is an overall atmosphere that is not conducive for business. Also, since the private licensees have been allowed to operate for just one month, there is less interest among them to continue," said one of the zonal licensees.

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With 16 zonal licenses surrendered so far, the liquor availability in the city is unlikely to come to normal levels in the near future, he said.

Traders take a cautious approach

Those outlets which decided to resume operation from Tuesday are also taking a cautionary approach.

Most traders haven't placed bulk orders with wholesalers because they have a limited time of one month to clear the inventory.

¡°We incurred a loss of Rs 1 to 1.25 lakh on Monday because of the liquor confusion. We lost our visitors to Gurugram and Noida. But we hope that the situation will become normal in the next few days,¡± the owner of a well-known food chain told PTI.

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"Start-stop-start mode or very short-term extensions like a month just disrupt the supply chain, creating stock pile-ups or stock-outs that take time to regain shape and flow. This is a loss to all stakeholders, be it the government, the manufacturers, the traders or the consumers," Confederation of Indian Alcoholic Beverage Companies, Director General Vinod Giri said.

The old excise regime will kick in from September 1, with government agencies taking back the reins of retail liquor shops in the city from private players.

Noida, Ghaziabad gain from Delhi's loss

The continuing confusion is benefitting liquor traders in Noida and Ghaziabad along the Delhi border as they saw an increase in sales.

While there was a significant spike on Monday, it did not continue on Tuesday as some liquor shops in Delhi reopened.

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