Times of India | 1 month ago | 05-10-2022 | 11:58 am
PANAJI: Goa may no longer be the country’s cheapest liquor destination — a tag it has held for decades — as stakeholders claim that higher excise duty has caused it to lose at least half its market to north Indian states over foreign liquor sale. In a trend reversal, travellers from northern states, including from the national capital, now arrive in Goa with bottles of foreign liquor whether for a wedding, holiday or any other purpose. Earlier, such travellers would leave the sunshine state with at least five bottles of foreign alcohol in tow. Ripple effects of this new trend has already begun affecting liquor traders who say they have registered a drop in sales over the past two months. They warn of hard days ahead if the Goa government does not change its stance on the liquor policy when other states have already slashed excise duty. “Foreign liquor across north Indian states is cheaper than in Goa. Counters across the state have registered a drop of 30-40% on sale of foreign liquor as a result,” president of the Goa Liquor Traders Association, Dattaprasad Naik, said. Although Goa still has an edge with Indian-made foreign liquor (IMFL) and beer, the drastic reduction in excise duty on foreign liquor by northern states will ultimately result in the prices of popular foreign alcohol brands being on a par with Indian-made ones. “If a consumer gets branded imported scotch for the same price as that of IMFL, why would he buy the latter?” Naik reasoned. “We do not make money on IMFL. Our profit difference is just 2-5% on a bottle of IMFL costing Rs 200-600, while on foreign liquor it is 8-12%.” In some northern parts of India, a 750ml bottle of foreign liquor can now be purchased for half the price it is sold at in Goa. While a 750ml bottle of Johnnie Walker Red Label whiskey, for example, is being sold at Rs 1,750 in Goa, its price in Gurgaon is Rs 850, Delhi is Rs 1,000 and Rajasthan is Rs 1,500. “An air passenger is permitted to carry six bottles of alcohol. Lately, we have observed that for destination weddings held in Goa, hosts request their guests to bring in six liquor bottles each,” a hotelier said on condition of anonymity. Even Maharashtra has followed in the footsteps of northern states and reduced excise duty. With the difference in pricing of foreign liquor in Goa and that in the neighbouring state now ranging between a mere Rs 200 and Rs 300 a bottle, the only customers keen on purchasing foreign liquor from Goa are from the southern states of Telangana, Andhra Pradesh, Kerala, Karnataka and Tamil Nadu. Wine store owner Manoj Joshi said that Goa is at a disadvantage as other states have amended their excise policies in recent times. “The time has come for Goa to read the writing on the wall and modify its policy too,” Joshi said. During each fiscal, barring the last, the state has raised excise duty by around 5%. In fact, excise duty has been Goa’s most assured revenue source as it never saw a drop in revenue except during the time of the Covid-19 pandemic. In 2020-21, it earned Rs 519 crore against a target of Rs 548 crore. It did even better in the subsequent year, surpassing its goal of Rs 629 crore and collecting Rs 650 crore. For 2022-23, it aims to generate Rs 629 crore. Naik said liquor traders selling premium foreign liquor brands are also placed at disadvantage if they have to pay a hefty registration fee for every label, which is either low or non-existent in other states. “We need an overhaul of the excise policy before it is too late,” he said. A senior excise official said they are seized of the matter and will decide on the changes required in the days to come. “We know the problem. The matter is being studied by the government,” the official said.
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