Big Booze News: Punjab Hikes IMFL Rates, Expands Country Liquor Supply!
The Punjab government has rolled out its excise policy for 2025-26, bringing some major changes to the liquor landscape. If you enjoy premium spirits, brace yourself—India Made Foreign Liquor (IMFL) and Imported Foreign Liquor (IFL) are about to get costlier. Meanwhile, the state is boosting its revenue target to a whopping Rs 11,020 crore, a significant jump of Rs 875 crore from last year.
What’s Changing in Punjab’s Liquor Market?
- Price Hike on Premium Liquor: IMFL will see an increase of Rs 10-20 per bottle, while IFL prices are set to rise by Rs 30-40, depending on the brand.
- Bigger Quota for Country Liquor: The annual quota for Punjabi Medium Liquor (PML) is up by 3%, from 8.286 crore proof litres to 8.534 crore proof litres. However, its price remains unchanged.
- Drastic Cut in Beer Shop License Fee: In a bold move to encourage standalone beer shops, the government has slashed the license fee from Rs 2 lakh to just Rs 25,000!
- Bigger Liquor Vend Groups: Each group of vends will now be worth Rs 40 crore (with a 20% variance), reducing the total number of groups from 236 to 207. While small contractors are upset, officials insist they can form groups to stay competitive.
- E-Tendering is Back: The government is returning to e-tendering for liquor vends, moving away from the draw-of-lots system, aiming for better transparency and revenue.
More Changes to Keep an Eye On
- Cow Welfare Cess Increased: Now at Rs 1.50 per proof litre, boosting revenue from Rs 16 crore to Rs 24 crore.
- Relief for Defence Personnel: The fee for their wholesale liquor license has been slashed from Rs 5 lakh to Rs 2.5 lakh.
- Boosting Tourism: Farm stay license holders can now stock up to 36 quarts of IMFL and 25 bottles of beer, gin, vodka, and wine—previously limited to just 12 bottles.
- Mandatory Model Shops: Every group in Municipal Corporation areas must now have at least one model shop to enhance consumer experience.
- New Bottling Plants Allowed: To promote investment, the state has given the green light for new bottling plants.
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Why These Changes?
With neighboring Chandigarh offering competitive liquor prices, Punjab aims to curb smuggling and drive up legal sales. Revenue will also be bolstered through excise fees, import duties, and licensing costs.
Punjab’s excise policy shake-up is set to redefine the state’s liquor business. While high-end liquor lovers might feel the pinch, beer lovers and small-scale liquor traders could benefit.
