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Delhi's decision to reduce liquor rates might cut into sales of other NCR cities

Noida: The liquior trafficking on Delhi's borders might be increased after the decision to slash rates of imported liquor likely to adversely impact sale across NCR cities of Uttar Pradesh like Noida, as per sources. Sources said that they have found several instances where people while coming to Noida takes liquior from Delhi. "Comparing the liquior prices, Delhi and few cities of Haryana are less than Noida," added sources.

Sources further added that this shift in price will affect liquior revenue in Noida to great extent. As a result of cheap liquior in so many other parts of NCR, even the residents of Noida will now prefer to buy their alcohol outside the city and bring it back.

Given how connected cities in the NCR are, people often end up working outside Noida which gives them the convenience of buying alcohol on their way back home to Noida. In addition, the sheer number of people travelling to and from Noida on a daily basis means that law enforcement cannot practically stop every single person at the border to check for liquor.

As per rules, a person can carry only one unsealed bottle of liquor from a neighbouring state to Uttar Pradesh. Anything more than this will invite fine. In the last financial year, Gautam Budh Nagar's excised department had set a record by increasing their liquior revenue by 44 per cent. And this too was only possible because of the end of monopoly in the liquior business, which led to more varieties being made available across Noida.

In the meantime, liquior prices have been increased in neighbouring Gurugram and Faridabad of Haryana. This will also likely lead to a large number of people buying their liquior in the Capital city to take it back to Haryana. This will lead to Delhi having the cheapest liquior prices in all of NCR which will considerably affect liquior revenue in neighbouring NCR cities.

While the move from Gurugram to increase excise duty on liquior is aimed at increasing liquor revenue by at least 500 crores, the move might backfire. What authorities in Haryana might not have considered is the fact that the increased price might lead to a decrease in purchase.

Moreover, another reason residents in Haryana's Gurugram and Faridabad districts might choose not to buy alcohol from their local stores is that neighbouring cities will have it on their shelves for a lot cheaper.

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