The Bhagwant Mann government of Punjab has approved its first excise policy on Wednesday. The state government estimates that after the new excise policy, the revenue from liquor will increase by 40 percent. The new excise policy will come into effect from July 1 and will remain in force till March 31, 2023. Apart from beer, mainly IMFL, IFL and PML liquor is consumed in Punjab. IMFL means Indian Made Foreign Liquor, IFL means Imported Foreign Liquor and PML means Punjab Medium Liquor.
There will be no quota on the sale of beer and IMFL. Now liquor companies can sell unlimited beer and IMFL. This will increase competition in the market and bring down the prices of liquor. Let us know what is going to change with the new policy and how is the liquor market of Punjab?
How much alcohol did Punjabis drink in FY 2021-22?
Including beer, IMFL and IFL, 275 crore bottles of liquor were consumed in Punjab last year. The total population of the state is 2.96 crores.
Which is the most consumed liquor in Punjab?
The alcoholics of Punjab swear by country liquor ie PML. In the last financial year, 18 crore bottles of PML have been consumed. However, statistics show that 15 crore bottles of PML have been sold during this period.
What is the consumption of beer and IMFL?
Last year residents of the state consumed 4.75 crore bottles of beer and 4.80 crore bottles of IMFL. Sources related to the liquor business tell that alcoholics in Punjab do not like the reduction of alcohol in beer. So beer is not his favorite option. A major portion of alcohol is consumed in rural areas but villagers do not like IMFL as it is costlier than PML. Compared to Beer, IMFL and IFL, PML is the cheapest. But the revenue comes more on expensive liquor. Therefore, despite the high consumption, the revenue from PML is not high.
How does Punjab compare to this consumption with neighboring Haryana?
A government functionary says that the National Capital Region (NCR) contributes the most in the sale of Haryana’s beer, IMFL and IFL. Whereas in Punjab the highest consumption of alcohol is in rural areas.
What is in the new excise policy?
The state government will earn revenue through license fee from the new excise policy. COW Cess (Cow Cess) and Special License Fee have also been added to this. Excise duty on beer, IMFL and IFL has been kept at one percent. The department will start 40 degree PML to check illegal distillation from Lahan. It will be of white color and will be sold in a 180 ml food grade plastic pouch. This liquor will be sold at a very low price.