New Liquor Policy Compelled Delhi Zonal Retailers to Surrender Their Licenses

Due to lower revenue and unfair competition in the market, approximately 11 of the total 32 zonal liquor retailers in the national capital have surrendered their licenses. According to industry sources, retailers who have surrendered their licences have largely blamed some barriers in the new liquor policy, such as arbitrary price fixing, for their business's non-viability.

Many posh areas of the national capital now lack liquor stores, with south Delhi being the worst-affected. "The barriers in the new policy and its faulty implementation have led to outlets shutting down across the city. Areas like Cannaught Place, Saket, Green Park and other parts of south Delhi are facing the liquor crisis," said a source from the industry.

"While the policy was good, there were faults at the implementation level which led to this pathetic situation," said Vinod Giri, Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC).

He emphasized the flaws by stating that the number of shops in each zone is excessive. The policy allowed 27 liquor vends in each of the 32 zones, which Giri believes is unjust. Second, he claimed that the bidding policy imposed a significant financial burden on shop owners because it was not profitable due to the increased number of shops.