Liquor price hike likely ahead of I-Day

Kolkata: With Bengal poised to hike the price of alcohol ahead of Independence Day, 'cheers' may come at a heftier cost for alcohol aficionados ahead of this festive season. Starting in August, prices for both Indian-made and foreign liquor are expected to increase by 5 to 7 per cent. Domestic liquor prices are projected to rise by Rs 5 to 10 per bottle. The anticipated hike follows a pattern of price adjustments typically seen after the annual Budget, which has already seen an increase in cigarette prices this year. The Excise Department has received requests from liquor manufacturers to increase prices for domestically produced foreign liquor and beer, although no official response has been provided yet. Additionally, there are discussions within the department about potentially raising taxes on liquor.

The last price increase in Bengal occurred in 2021, with a subsequent reduction in beer prices in 2022. Now, prices are poised to rise once more. Current prices for a 600 ml bottle of domestic liquor, priced at Rs 155, could increase to Rs 160. Smaller bottles (300 and 350 ml) may see price adjustments from Rs 80 to Rs 90 and from Rs 95 to Rs 100, respectively. Beer bottles, currently costing Rs 135, might jump to Rs 150, while foreign liquor bottles could experience a price increase of Rs 20 to Rs 30. Revenue from liquor sales has been robust in recent fiscal years. In 2021-22, the state recorded liquor sales amounting to Rs 18,000 crore, generating approximately Rs 11,000 crore in tax revenue. The following year saw sales rise to Rs 21,000 crore, with tax revenue climbing to nearly Rs 15,000 crore. For the fiscal year 2023-24, liquor sales reached Rs 23,000 crore, yielding tax revenue of Rs 17,000 crore.