Delhi Government Discontinues Discounts On Liquor MRP

Liquor dealers in Delhi were availing discounts on Indian and Foreign brands ranging from 30 to 40%. On Monday, the Delhi government stated that discounts/concessions on liquor MRP would be phased out.

The Delhi government’s new exercise policy reflected the idea of discounts. The Delhi government determined the maximum retail price of each liquor brand and its manufacturing as part of its new excise policy, and dealers were free to charge whatever they wanted within that MRP, but not more.

Several vendors started providing considerable discounts, about 30-40%, on Indian and Foreign brands by adopting competitive pricing to deplete their stock before their license expires by the end of March.

This led to long lines of tipplers gathering outside liquor stores in various parts of Delhi.

What did the government say?

“It has been brought to the attention of the excise department that as a result of the discounts being offered by the licenses through their retail shops, there are cases reported of massive bunches gathering outside the liquor stores lending to law and order problems”, the government said in its new order.

“It should also be remembered that the Covid crisis is far from finished, and the threat of Covid-19 still exists, so the large crowds are likely to escalate the surge of Covid cases in Delhi”, it concluded.
The government also stated that the discounting leads to unhealthy market practices used solely for short-term profit.
As a result, it commanded liquor dealers to stop offering discounts on the MRP of liquor. In addition, the order stated, “All license holders shall not grant concession on the MRP of liquor.
Some store owners used social media to promote their discount programs and displayed banners and ads that were not permitted.