5 days ago
States That Sell Cheap Liquor vs Expensive: Exploring Options As Alcohol Prices Rise In Maharashtra
Under the new policy, excise duty on Indian Made Foreign Liquor (IMFL) has been increased in Maharashtra.
The Maharashtra government has introduced a new liquor policy featuring significant hikes in excise duties, aiming to generate an additional ₹14,000 crore in annual revenue. As part of the revised policy, the excise duty on Indian Made Foreign Liquor (IMFL) has increased from three times the manufacturing cost to 4.5 times, capped at ₹260 per bulk litre. Meanwhile, the duty on country liquor has gone up from ₹180 to ₹205 per proof litre.
As a result of the revised excise duties, liquor prices across Maharashtra are set to rise significantly. A 180 ml bottle of country liquor will now cost at least ₹80, up from the earlier range of ₹60 to ₹70. Indian Made Foreign Liquor (IMFL) will be priced at ₹205, marking a sharp jump from the previous range of ₹115 to ₹130. Premium foreign liquor will also see a steep hike, with prices expected to reach ₹360, up from ₹210 earlier.
The government has also launched a new category called Maharashtra Made Liquor (MML). This includes grain-based spirits made only by local manufacturers. The goal is to encourage regional production.
States Where You Can Get Cheap Liquor
According to the International Spirits and Wine Association of India, Goa continues to be the most affordable state for alcohol, largely due to its modest 49% liquor tax. Delhi follows with a 62% tax, while Haryana levies just 47%. However, despite Haryana's lower tax rate, liquor prices there are often higher than in Goa due to elevated maximum retail prices (MRPs). A similar situation plays out in Delhi, where, even with a higher tax rate, alcohol remains more affordable than in several other Indian states.
Among other states, Karnataka currently has the highest liquor tax in the country at 83 per cent, which makes it the most expensive place to buy alcohol. Rajasthan follows with a 69 per cent tax. Telangana imposes a tax of 68 per cent and Uttar Pradesh 66 per cent.
According to a study by the National Institute of Public Finance and Policy (NIPFP), Telangana leads all Indian states in alcohol spending, with an average annual per capita expenditure of ₹1,623 on alcoholic beverages.
Andhra Pradesh ranks second, with individuals spending an average of ₹1,306 per year, followed closely by Punjab, where the per capita liquor spend stands at ₹1,245. This spending metric is derived by dividing a state's total alcohol expenditure by its population, offering a clear picture of average consumption habits.
No Liquor In Bihar, Gujarat: How Successful Is The Ban
Bihar and Gujarat are the two Indian states where the sale and consumption of alcohol are completely prohibited. Gujarat has upheld this ban since May 1, 1960, while Bihar implemented its liquor prohibition in 2016. The primary objective behind these bans was to curb the social harms linked to alcohol, such as domestic violence, family disputes, and financial strain on households. Policymakers believed that reducing access to alcohol would enhance community well-being, especially for women and low-income families.
Supporters of the bans argue that they have helped lower alcohol-related health issues and encouraged families to redirect spending toward food, education, and healthcare.
However, the bans have also presented significant challenges. A thriving black market has emerged, with bootlegging operations selling alcohol at inflated prices. This has given rise to illegal drinking spots and made enforcement more difficult. An even more serious consequence is the spread of spurious liquor, which has led to fatal hooch tragedies in both states, highlighting the public health risks associated with unregulated alcohol.
