Beer becomes dearer in Gurugram vends
NEWDELHI: Beer has become more expensive at the vends of Gurugram, and will cost more at restaurants and pubs as well from the start of July, because of factors ranging from a supply shortage to the higher reserve price set by the Haryana government in this year’s auction of licences to run liquor stores.
The price increase, ranging from 27% to 44%, is also linked to brewers stopping credit to vendors in the Millennium city, on the southern outskirts of New Delhi. A 330 ml bottle of Fosters beer costs ₹130 at a vend, up from ₹90. It is sold for ₹55 in the capital.
With manufacturers stopping beer supplies on credit, retailers who have paid a heavy price for licences don’t yet have the kind of cash flows needed to buy beer in cash and stock their vends, resulting in the shortage. HT couldn’t ascertain the extent of the shortage.
“We have suffered losses in the last three months due to a shortage of beer in the city; we have paid hefty license fees and we are not making profits due to the short supply,” said Sanjeev Mehta of Lake Forest Wine, one of the retailers in the city.
Haryana has an MRP concept for beer, wine and spirits, but there’s a catch. It doesn’t stand for maximum retail price, but is short for minimum retail price. This allows wholesalers and retailers freedom to price the products as they deem fit.
“We do not regulate the end price to the users,” said Sanjeev Kaushal, additional chief secretary (excise and taxation),
The department increased the reserve price to ₹62.5 crores this year from ₹50 crore in 2017 at the auction of licences to liquor vends . Excise officials said 246 Indian Made Foreign Liquor (IMFL) liquor/country liquor vends were auctioned in March, and the government earned a total of ₹741.29 crore.
Some Gurugram residents said they would rather go to Delhi to drink beer because the brew is fairly priced in the capital at a maximum retail price. Unlike in Gurgaon, the price is listed on the excise department’s website, and overcharging is not possible.
Minimum retail price for 330 ml of beer is ₹35 under the Haryana excise policy. A clause in the policy reads that no maximum retail price is fixed.there is no maximum retail price sticker on any liquor in Haryana, so the consumer cannot challenge the price he is charged.
“My office is in Delhi and I buy all my beer from a government retail vend. Not only is the price listed online and on every bottle,i am also assured of quality and non-expired beers,” said Vinod Tayal a resident of DLF Phase 2. “I can also check the authenticity of every purchase by going on the Delhi excise webpage or app by scanning the QR Code. As I live in Gurugram, I just have to bring a case home , chill and drink. After all, ₹55 per pint when compared to ₹130 in this city is big savings.”