foreign-liquor-prices-rise-by-200-in-himachal-pradesh

Foreign liquor has become more expensive in Himachal Pradesh as the state government has increased prices by up to Rs 200 per bottle. 

The Tax and Excise Department has released the revised liquor prices for the financial year 2025-26, marking a shift back to the Maximum Retail Price (MRP) model from the Minimum Sale Price (MSP) system that was implemented last year. With this change, liquor contractors will no longer have the authority to set their own profit margins.

In 2024, the government had divided domestically produced foreign liquor into two categories, applying a 15 per cent profit margin on lower-brand liquor and 30 per cent on higher-brand liquor. 

The lower brand category included liquor with an MSP of up to Rs 500, while those priced above Rs 500 were classified as high-brand liquor. However, with the reintroduction of MRP, the previously fixed 15 per cent and 30 per cent margins have now been surpassed.

The decision to revert from MSP to MRP comes after a year of implementing the Chandigarh-style liquor sale model, which allowed contractors to set their own margins. 

Under this model, bottles were labeled with MSP instead of MRP, and liquor traders were given flexibility in pricing. This move was initially aimed at countering illegal liquor trade and making Himachal Pradesh more competitive with neighbouring states such as Punjab and Haryana, where alcohol consumption is significantly higher.

 

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Despite this attempt, the auction of liquor contracts in Himachal Pradesh last year saw a higher-than-expected base price, which led to the government's reconsideration of the policy. 

The Tax and Excise Department reported revenue collection of approximately Rs 2,600 crore in the last financial year, and for 2025-26, the target has been raised to Rs 2,800 crore. To ensure transparency and prevent overpricing, liquor shops are now required to prominently display the official rate list of all brands. 

Additionally, the contact numbers of the respective tax and excise inspectors must be included on these rate lists. Strict action will be taken against shop owners who fail to comply. Customers who are charged more than the MRP can report the issue to the designated officers via phone.

 

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