Supply runs low, desi daru prices on a high

Chandigarh, It’s a double whammy for all those Punjabis who love their “desi tharra”. Not only is the supply of liquor across the state, known for its love for the Patiala peg, getting restricted because of the reduction in the total liquor quota and closure of vends along the highways, but this demand and gap supply will also burn a hole in their pockets.
Across most districts in Punjab, the prices of country made liquor have gone up by Rs 50-Rs 60 per bottle (750 ml), Rs 30 for half bottle and Rs 20-Rs 30 for a quarter bottle. Sources in the liquor business say that in Ludhiana, Ferozepur, Muktsar and Faridkot districts where the collective tenders were allotted to a single contractor, the rate of the country made liquor is expected to rise by almost Rs 70-Rs 80 per bottle in the coming days.
The reason – the Punjab Government has reduced the quota of country made liquor by 14 per cent (from 10.10 lakh proof litres last year to 8.70 lakh proof litres for this fiscal), while removing the cap on the maximum retail price (MRP). Besides, the new liquor policy has raised the bar on the minimum sale price from Rs 160 per bottle last year to Rs 175 per bottle now. This means that liquor can be sold by the contractor on any price he deems fit which is over Rs 175 per bottle. As a result, prices of country made liquor have sky rocketed.
Sources in the liquor trade also rue that with the state government making the licencing units (referred to as groups) larger than what these were last year in 18 districts, and with the four above mentioned districts going to one single liquor contractor, indicating monopolisation in business, the prices would go up further.
For example, Mohali district, which had 26 groups last year, now has seven. The amalgamation of groups means that there are fewer players, who can easily work in tandem and decide on the price. No wonder that in Ropar, the price of a popular brand, Dholak, has gone up from Rs 190 per bottle till last week to Rs 240 per bottle now.
Similarly, Mota Santara prices have gone up from Rs 180 per bottle to Rs 230 per bottle. In Jalandhar, the prices of these two brands are now Rs 250 per bottle- up by Rs 60.
However, officials in the state Excise and Taxation Department deny that the reason for the hike in country made liquor prices is the “monopolisation in trade” because of increasing the size of licencing units/groups. “It is only because the quota has been reduced from last year and the demand and supply gap that has led to the increase in prices. This is the most trade friendly liquor policy, made only after consultation with the liquor manufacturers and traders. The excise collections were down by Rs 600 crore last year. It is only to increase the revenue and to help contractors recover losses that we removed the cap on maximum retail price,” he said.