Delhi government discontinues discounts on MRP of liquor

Delhi government discontinues discounts on MRP of liquor

On February 28, the Delhi government ordered all liquor vendors to discontinue discounts, rebates, and concessions on the (MRP) maximum retail price, failing to decide which action would begin against them.

The order stated issued by the Department of Excise.

"All licensees should neither give discount or concession rebate on the (MRP) maximum retail price of liquor,"

The order comes due to offerings of huge discounts, as high as 30-40 percent, by some liquor sellers in a bid to clear their stocks by the end of March. This has led to reports of massive crowds outside some liquor outlets and shops.

The Delhi government's excise policy, which came into effect last year, allowed the liquor vendors to offer discounts to draw customers' attention. The logic of the policy was to promote healthy competition.

The order said.

However, the kind of rebates and discounts being offered is "leading to unhealthy market practices deployed purely for short-term business profits,"

Delhi government discontinues discounts on MRP of liquor 1unsplash image

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The Delhi government also noted that law and order problems had been reported due to large crowds outside retail vendors due to the high discounts and rebates.

The order was noted.

"It has been brought to notice of the excise department that as a result of the big discounts being offered by the licensees through their retails vendors, there are many instances reported of large crowds gathering outside the liquor outlets and stores leading to law and order problem,"

It further said.

"It is also to be keep in mind that the COVID situation is not yet over and the danger of COVID-19 continue, and therefore the huge crowds are likely to offend the surge in the COVID cases in Delhi,"

With the new excise policy in November last year, liquor stores in Delhi have been under pressure to empty their stock by the end of March ahead of the renewal of their licenses in the new financial year.

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