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Time of India
4 days ago
- Business
- Time of India
Excise duty hike hits margins for sellers, liquor supply for consumers
Nagpur: The hike in excise duty on booze has upended the calculations of tipplers as well as bar and wine shop owners. Liquor makers have cut the wholesalers' margin to minimise the price rise, leading to some traders not stocking liquor with small profit margins. This led to a short supply of some popular brands, said sources. The sharp increase in the levy has left the liquor trade jittery, ultimately affecting the supply of a number of brands of affordable Indian-made foreign liquor (IMFL). Distributors and retailers are pointing fingers at each other. The situation is worse in centres like Mumbai and Thane, though Nagpur is also feeling the heat. As the liquor makers have cut the wholesalers' margin in order to adjust the new prices following the duty hike, a number of traders are finding it unviable to sell liquor for small margins, leading to the short supply, said sources. Instead of passing on the entire duty hike to the consumers, the distributors have cut the wholesalers' margin to around 2 to 2.5%, which is half of the earlier level. This was to limit the hike in the maximum retail price (MRP) of some of the entry-level brands. Miffed by this, the wholesalers have cut the credit period allowed to the retailers or permit rooms (bars) to just 15 days. Earlier, two to three months' credit was allowed. The wholesalers say, with shrunk margins, they cannot afford such long credit periods. Now, required to pay early, the retailers and permit rooms have cut their offtake from the distributors, said sources in the wholesale trade. The retailers, on the other hand, say it's the distributors who are not supplying enough bottles after the margins were reduced. This has typically affected seven to ten brands of whiskies and a couple of rum brands, which are now available in the range of Rs270 to 300 per nip (180ml bottle). These are fast-selling brands from which both retailers and wholesalers get a chunk of business. Now, as the margins on these very brands have been cut, the business is no longer as profitable, said a trade source. Had the old margins continued, these bottles would have cost over Rs300 a nip, said sources. Rajeev Jaiswal, president of Nagpur District Permit Room Owners Associations, said, "The supply for popular brands has been low from the distributors. The bars are managing with the existing stock. It's manageable due to the shravan month, when a large number of people abstain from drinking. However, with the Pola festival ahead, liquor demand will go up again. The stocks need to be replenished by that time." "We just got supply after a fortnight's wait," said an attendant at a wine shop, pointing out a whisky brand. "Even other brands are not available as per demand. There is an acute shortage of 750ml bottles of a number of brands. There is no supply of 90ml miniature bottles too. For some brands, quarter bottles are not available," said the shopkeeper, referring to a rum brand. The bar next door also confirmed a shortage of big bottles of the brands. There is no dearth of premium brands. However, the supply of the common man's IMFL has been hampered, said another vendor. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
07-08-2025
- Business
- Time of India
MML to beat excise hike with home grain brew
Nagpur: Unhappy over liquor getting dearer after the recent excise duty hike, tipplers may soon get cheaper Maharashtra-made booze. A govt resolution (GR) issued by the state on Thursday spells out details for manufacturing of Maharashtra's pure home-brewed grain-based liquor. Maharashtra Made Liquor (MML) as it is termed is the third category of booze introduced by the state govt. The other two are Indian Made Foreign Liquor (IMFL) and country liquor. Like IMFL, the market would now get brands of whisky, rum, vodka, or gin made by units that have at least 25% promoters from Maharashtra and the business does not have a single rupee of foreign investment. After excise duty was hiked in June, the state announced the introduction of a of MML as the new category, which needs to be exclusively grain-based liquor. MML would, however, attract nearly half of the excise duty compared to that levied on IMFL, ultimately making it cheaper than the latter, said sources. The conditions laid down, however, also state if the same brand is sold outside Maharashtra, the MML tag would be withdrawn. The same brands cannot even be made outside Maharashtra. Manufacturers who got a licence to make MML can, however, lease a part of their capacity to others and retain a part exclusively for making the Maharashtra booze. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like BITS Excellence, now online BITS Pilani Digital Apply Now Undo The conditions also say that MML has to be mandatorily registered within one year and licence holders have been barred from taking up third-party production too. The Nagpur Permit Room Owners Association, a guild of liquor bars, has welcomed the move. Rajeev Jaiswal, association's president, said it would help introduce cheaper liquor. The state should also consider easing VAT on MML. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and s ilver prices in your area.
Time of India
14-07-2025
- Business
- Time of India
Strike over VAT & excise hike total in Nagpur: Bar owners
1 2 Nagpur: Tipplers wanting to settle down for a drink found their favourite joints closed on Monday. Permit room (liquor bar) owners across the state were on strike against the govt's move to impose value-added tax (VAT) on liquor and the latest move to hike excise duty. Wine shop owners expressed solidarity with fellow traders and kept their outlets closed till 4pm. Sales at the wine shop counters resumed after that as beer shops, clubs, and certain fine dining restaurants that serve liquor continued business as usual. There are over 1,100 bars in Nagpur district and 470 in the city. Permit Room Owners Guild claimed the strike was total success. A day's closure of mid-level bars will lead to a revenue loss of Rs3 crore in terms of VAT in the district, claimed the association. In Nagpur district alone, all the bars combined clock in a daily business of around Rs30 crore on average. With a 10% VAT imposed on it, the govt may have lost at least Rs3 crore. The statewide loss is expected to stand at Rs150 crore, said Rajeev Jaiswal, the association's president. The permit owners argue that VAT, which is exclusively charged on sales at bars, affects their competitiveness compared to wine shops. Now the hike in excise has further widened the gap. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Switch to UnionBank Rewards Card UnionBank Credit Card Apply Now Undo "Now a nip (180 ml) of liquor costs Rs300 in a wine shop. In a bar, it is Rs400, so why would anyone come down to a permit room," said Jaiswal. Kailash Jogani of Nagpur Chamber of Commerce Limited (NCCL), who also attended the protest meet, backed the association's suggestion to charge VAT on manufacturers. This will not only increase the revenue but lead to an equal distribution of taxes on permit room and wine shop owners, he said.
Time of India
11-07-2025
- Business
- Time of India
Liquor prices rise after excise duty hike, bar owners protest 10% VAT
Nagpur: A large peg of one of the common brands of rum that could easily be had for Rs70 in a modest bar would now cost Rs110. An entry-level whisky or vodka sold for Rs100 a peg may now cost at least Rs150 in a basic joint. It may go much further in high-end restaurants. On the other hand, rates of premium liquor like scotch may only inch up moderately after last month's hike in excise duty by the state govt, said members of the Nagpur District Permit Room Association, a bar owners' guild citing calculations on the basis of latest maximum retail price. The fresh stock, on which the new rates are applicable, has reached the dealers and will be available in the bars in the coming days, said the association's president, Rajeev Jaiswal. A 180ml bottle of rum that costs Rs140 to Rs160 will be in the range of Rs220 to Rs260 once the fresh stock reaches wine shops, he added. Certain brands of whiskies, normally consumed by the cost-conscious consumers, will now be in the range of Rs220 to Rs260 at wine shops, as against the older price of Rs160 to Rs190. In the bars, it would be easily 350 and further high for some brands. A 180ml bottle of slightly higher-end whisky will only be costlier by Rs 20. The excise duty does not impact the costlier brands of liquor, said Jaiswal, addressing a press conference on Friday. There is no change in the rates of beer or wine too. While the govt has increased the excise duty, the permit room owners are already up in arms against the value-added tax (VAT) on liquor. A 5% VAT was first imposed in 2005 to raise finance for drought relief in Marathwada. It was basically a surcharge. The drought ended, but VAT continued, and in 2023 another 5% VAT was imposed. VAT is only applicable for bars, which takes the rates up as compared to the wine shops, said Jaiswal. The association has been appealing for the removal of VAT and has met the political leadership at every level, he said. The association moots that the VAT component charged to the retailers should be added to the manufacturers' liability instead. This will lead to an equal passing on of the tax down the trade chain, covering even wine shop owners, he said. OWNERS CALL FOR STRIKE, BARS TO BE CLOSED ON MONDAY Tipplers may find it difficult to find a place to settle down for a drink this Monday. Bar owners across the state have called for a one-day strike against the imposition of 10% VAT, said the president of the Nagpur District Restaurant Permit Room Association, Rajeev Jaiswal. Even the premium hotels may not serve liquor to those other than staying in their rooms, he said. The imposition of VAT has been a vexed issue for the bar owners, he said. Protests would be held at the Samvidhan Chowk on Monday. After the symbolic protest on Monday, the association may decide to further intensify the agitation, said Jaiswal.
Time of India
10-06-2025
- Business
- Time of India
Get old wine at old rates beforeduty hike kicks in
Nagpur: The state govt has hiked excise duty on liquor, so tipplers have only a few more days to get a high from old wine and pay the old rates. Though state cabinet has cleared the hike, a final notification is yet to reach excise offices. Some liquor dealers and bar managers say the drinkers may not have to shell out more right away. The new taxes are expected to be applicable on fresh stock. This means old stock, which generally lasts for a week at the outlets, will still be available at the same price. Excise is levied at manufacturing stage & passed down trade channels, finally reaching the consumer, explained a state govt official. Dealers said increase in duty will make a peg of entry-level drink costlier by Rs15-20. The increase would be substantial for premium brands like scotch. Rajeev Jaiswal, president of Nagpur District Permit Room Owners Association, said a quarter bottle of rum that cost Rs145 would now retail around Rs160. In the bar, a peg of any of commonly consumed brands may cost Rs100 or more, depending on the type of outlet. Jaiswal said liquor in the state is among costliest, which leads to smuggling from neighbouring states. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo Often, liquor is brought illegally from Madhya Pradesh, where rates are substantially lower. The govt must also act to prevent smuggling as it also leads to revenue loss. The move has left tipplers disappointed. "We are barely able to afford peanuts along with drinks. Now even that would be a luxury," said Siddharth, a youngster. "I may have to cut down on weekly trips to the bar with my friends," said Priyank, also in his 20's.
