Chandigarh: Liquor prices in Punjab are set to rise as Punjab govt rolls out its Excise Policy for 2026-27 with a stronger push on revenue mobilisation. This will likely increase reserve prices and licence fees, further impacting consumers.The policy, announced on Monday, sets a revenue target of Rs 12,800 crore for 2026-27 — Rs 1,780 crore higher than 2025-26 revenue projection.
At the first stage of sale, an additional licence fee will be levied on Indian-made foreign liquor, imported foreign liquor, wine, cider, rum, gin, vodka and other liquor products, as well as beer. For products with an ex-distillery price of up to Rs 1,000, the fee will be increased to Rs 43 per bulk litre from Rs 37 in the previous policy. For products priced between Rs 1,000 and Rs 2,000, the rate will be increased to Rs 52 per bulk litre from Rs 45. For those between Rs 2,000 and Rs 4,000, the fee will be Rs 90 per bulk litre, up from Rs 80, and for products priced above Rs 4,000, the rate will be Rs 130 per bulk litre from earlier Rs 100.The special licence fee increased from Rs 1.5 per proof litre to Rs 1.75 per proof litre. The proceeds of this fee will be disbursed to the concerned department from the consolidated fund of the state.Under the new framework, retail licences will be renewed for 2026-27, while wholesale L-1 licences will not be renewed and will instead be granted afresh for the new financial year.Retail licensees seeking renewal will have to deposit 0.6% of the prescribed licence fee of the group for 2026-27 as a renewal fee along with their application. The reserve price for retail groups has been fixed at a 6.5% increase over the previous year’s fee. The formation of retail groups remains unchanged from last year. A total of 207 groups are available for licensing, excluding airport groups. Groups that are not renewed will be disposed of through an e-tender process, as was followed in 2025-26. In such cases, modification of group size will be permissible.The annual quota for Punjab Medium Liquor will increase by 3%, from 8.534 crore proof litres in 2025-26 to 8.790 crore proof litres for 2026-27. The quota for Indian Made Foreign Liquor will remain open, allowing licensees to lift stock based on market demand. According to officials, continuing the open quota system for IMFL, imported foreign liquor and beer enables the trade to reach its full potential. However, liquor traders criticised the policy, terming it unfavourable for small businesses.Excise duties on liquor will be adjustable against the prescribed licence fee. Retail licensees will be required to pay specific fees for issuing passes for different categories of liquor. Licensees may also lift an additional quota of Punjab Medium Liquor, subject to prescribed conditions and payment of applicable excise duties. Unsold stock from the previous year can be carried forward upon payment of applicable fees, with penalties for non-declaration.The policy lays down strict compliance and regulatory measures. Licensees must adhere to all rules, ensure timely payment of dues and prevent the sale of spurious liquor. Violations of licence conditions may attract stringent penalties, including immediate closure of vends.Health and safety provisions have also been incorporated. Bars will be required to use alcometers, and prominent signage warning about the health risks of alcohol consumption must be displayed.For marriage palaces and events, specific licences will be mandatory for serving liquor, with fees determined according to the scale of the function. The policy also provides a mechanism to ensure proper disposal of used liquor bottles at such venues to prevent misuse.While sharing the details of the policy, finance minister Harpal Singh Cheema stated, “During the SAD-BJP regime in 2011-12, excise revenue stood at a modest Rs 2,755 crore. Over the subsequent decade, growth remained slow and it reached only Rs 6,255 crore during the Congress regime in 2021-22.” However, following the implementation of a robust policy in 2022-23, the state witnessed an immediate and massive leap to Rs 8,428 crore. This momentum continued unabated, with revenue climbing to Rs 10,744 crore in the 2024-25 period and meeting the current target of Rs 11,200 crore for 2025-26.Malt production in PunjabIn a move aimed at strengthening industrial self-reliance and diversifying the state’s economy, Punjab will now allow its own malt manufacturing units. Finance minister Harpal Singh Cheema said the decision is intended to domesticate the entire production cycle, from processing barley to the distillation of premium malt, thereby reducing dependence on external suppliers for raw spirits.Cheema said enabling in-state malt production would help ensure the manufacture of high-quality spirits within Punjab’s borders while building a farm-to-factory ecosystem that adds value to the state’s agricultural produce. He emphasised that the transition is aimed at retaining capital within Punjab, generating specialised technical employment and reinforcing the state’s position in high-end industrial distillation.Crackdown against liquor smuggling: 4.4k FIRs lodgedSharing enforcement data, Cheema underlined the state govt’s zero-tolerance policy against liquor smuggling from neighbouring states and Chandigarh. He said enforcement agencies registered 4,406 FIRs and arrested 4,324 individuals as part of the crackdown. A total of 26,218 raids were conducted and 24,832 checkpoints were set up across the state.The drive led to the seizure of 455 vehicles and 1,76,552 bottles of liquor. In addition, the excise department destroyed 38,23,576 litres of lahan, seized 82,990 litres of ethanol and extra neutral alcohol, and confiscated 66,794 litres of illicit liquor. Authorities also dismantled 374 working stills. Cheema said the figures reflect the state’s continued focus on curbing illegal trade and safeguarding public safety while strengthening legal compliance in the liquor sector. BOX40-Degree PML introduced to curb illicit liquor To discourage the consumption of illicit liquor, the govt has introduced 40-degree Punjab Medium Liquor. The new variant will be white in colour and sold in 180 ml packing units. It will be made available at a lower price point. The quota of 40 degree PML will be up to 5% of the Minimum Guaranteed Quota of 50 degree and 65-degree PML for groups opting to open sub-vends for the 40-degree variant. These sub-vends will be set up exclusively in areas identified as prone to illicit liquor, based on requirements assessed from retail licensees. MSID:: 128712133 413 |
