CIABC hails Delhi liquor licence allotments, but cautions against high bid prices

By: |
August 08, 2021 6:35 PM

"Whilst we compliment the Delhi government for high revenues collection, we also urge it to ensure that such high auction prices are not passed on consumers in the form of higher prices, or to manufacturers in form of discounts.

"Neither of the two will be good for long-term health of the industry," Giri said in the statement on Sunday. (Representative image)

The Confederation of Indian Alcoholic Beverage Companies (CIABC) has hailed the Delhi liquor licence allotments but has cautioned against high bid prices saying it should not affect consumers or manufacturers.

“We welcome diversity in allotment of licences but hope high bid prices are not transferred to consumers or manufacturers,” CIABC Director-General Vinod Giri said in a statement.

While welcoming the successful allotment of retail vends through bidding, the CIABC has cautioned against high prices of alcohol licences in Delhi, the statement said.

It has hoped that high auction prices are not passed on to consumers in the form of higher prices, or to manufacturers in the form of demands for undue discounts, the statement added.

“Whilst we compliment the Delhi government for high revenues collection, we also urge it to ensure that such high auction prices are not passed on consumers in the form of higher prices, or to manufacturers in form of discounts.

“Neither of the two will be good for long-term health of the industry,” Giri said in the statement on Sunday.

It is hoped that the bidders have made realistic estimates of revenues and expenses and are able to achieve that without undue stress to themselves or to other stakeholders.

In the auction of liquor licences in 20 out of 32 zones in the national capital after the announcement of new liberalised excise policy, the Delhi government has earned a record Rs 5,300 crore, while another Rs 3,000 crore are likely to be earned from the remaining auction of licences, it noted.

“There has been visible excitement and sense of anticipation around the tendering for Delhi liquor retail vends. The outcome has opened up Delhi trade to experienced retailers, not only from the city but also from other parts of the country,” Giri added.

He added that it should help bring in new ideas and innovation to uplift the quality of liquor retailing in Delhi. “Distribution of licences among diverse groups should also weigh in against formation of trade cartels which was and remains one of our major concerns,” Giri added.

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