Economic slowdown brings 25 per cent slump in sale of liquor

New Delhi: The economic slowdown seems to have hit the sale of liquor, which has gone down by over 25 per cent in August in the national capital.

The data collected by the Delhi government excise department revealed that the excise duty collection from the sale of liquor was only Rs 325.99 crore in August this year as against Rs 435.83 crore last year during the same period, a decline of 25.20 per cent.

A senior excise department official attributed the drop in sale of liquor to the economic slowdown in the country.

At the all-India level, the sales growth of beer and spirits, which include whiskey, rum, brandy, gin, and vodka, has gone down by 5 per cent and 2 per cent between April and June this year as compared to the previous corresponding period from 7 per cent and 3 per cent respectively.

Also, the restrictions imposed during the Lok Sabha polls in April and May had brought down the sale of liquor during the peak summer season across the country.

According to the excise department officials, the excise collection was also less in June this year. The total collection was Rs 369.45 crore as against Rs 388.19 crore, a decline of 4.80 per cent than the corresponding period of the previous year.

However, the revenue collection was better in July this year as the total collection was Rs 423.88 crore as against `403.35 crore during the same period last year, a growth of 5.09 per cent.

The revenue growth was registered 9 per cent in May as total collection was `413.03 crore as against `378.53 crore last year.

Most of the popular beer brands—both Indian and imported—are either short in supply or are not available in Delhi. As beer has become the most preferred drink during summer season, its sale increases by up to 30 per cent. However, the retail liquor shops had no adequate stock of beer to serve to their customers this summer season.

The data showed that the total revenue collection from the sale of liquor was `5,028.17 crore in 2018-19.

Insiders attribute the decline of excise duty collection to the economic slowdown as it had impacted the pockets of the tipplers.

A wholesale liquor supplier said: “Those who preferred to have drinks at five star restaurants and bars are now avoiding so due to the slowdown in economy. Their numbers have drastically come down in the past two-three months.”

Besides economic slowdown, the Lok Sabha elections coincided with the Indian Premiere League (IPL) cricket tournament.

The period between April and June accounts for nearly 45 per cent of the annual sales in the beer segment.

Even the spirits, including whiskey, rum, brandy, gin, and vodka, had grown in double digits in 2018, the most since 2012, before falling to 2 per cent last quarter.