Delhi beer crisis: Why Bhutanese and Nepalese beers are flooding the national capital
Delhi is in the midst of a beer crisis—and not the kind you'd want before a house party. According to a Times of India report, the capital is facing an acute shortage of popular beer brands, with government-owned retail stores and even bars and restaurants offering limited options. What's more noticeable, however, is the sudden abundance of beers from Bhutan and Nepal now occupying prime shelf space across the city.
So, what's behind the foreign beer influx?
Experts attribute this unusual trend to a mix of policy paralysis, brand pushing, and profit incentives. Since there's no import duty on Bhutanese and
Nepalese beers
, wholesalers enjoy higher margins and are more willing to promote these products—often offering incentives to liquor store staff to ensure better shelf placement.
Vinod Giri, Director General of the Brewers Association of India (BAI), told TOI, "The challenge is mainly in government-run retail shops, where popular national brands are hard to find. Our market share estimates reveal that national companies and multinationals struggle to cope with current trade practices in these outlets."
Consumers Turning to Spirits—or Haryana and UP
With limited availability of trusted brands in Delhi, many consumers now travel to neighbouring states like Haryana and Uttar Pradesh to stock up or simply shift to spirits. Industry data shows that beer sales in Delhi dropped 37 per cent in FY 2023–24, while they rose nearly 10 per cent nationally.
'We've stopped experimenting with new beers here,' said Pratyush Ranjan, an IT professional from Dwarka. 'Instead, we go to Gurgaon, which isn't far, and buy the brands we know and love.'
Numbers Tell the Story
According to BAI data, Delhi stands out starkly when compared to other states. National beer brands make up 85 per cent of the market share across India, but in Delhi, they account for just 36 per cent . The remaining market is evenly split between regional brands and Bhutanese/Nepalese imports at 32 per cent each.
A senior Delhi government official told TOI that the higher margins on duty-free imported beers make them more attractive to wholesalers and vendors. "These brands often get premium placement in chillers, giving consumers fewer chilled options from national brands,' the official said.
The excise department is now studying the sale patterns and looking into issues like registration fees and brand margins.
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