Policy limbo leaves Delhi liquor sales on a roller coaster

Prolonged uncertainty over the introduction of a new liquor policy, pending since late 2022, has led to uneven trends in liquor consumption in Delhi. Excise department data show that total liquor sales rose from 2.3 crore cases in 2021-22 to 2.7 crore cases in 2022-23, then declined to 2.2 crore cases in 2023-24, before climbing back to 2.3 crore cases in 2024-25, reflecting market instability amid the policy deadlock.

Sales of Indian beers reflect the same zigzag pattern: it increased from 92.5 lakh cases in 2021-22 to a peak of 1.2 crore cases in 2022-23, declined to 77 lakh cases in 2023-24 before further falling to 70.2 lakh cases in 2024-25. Experts attribute multiple factors behind the fall in beer sales by 43% between 2022-23 and 202425, including vends trying to push relatively unknown brands to customers.

However, the number of IMFL (Indian made foreign liquor) vends in the city increased from 673 to 714 between 2021-22 and 2024-25, while registered liquor brands rose from 1,470 to 1,579 over the period.


Delhi’s liquor trade continues to operate under the excise policy of 2020-21, which has been rolled over five times since 2022 as the successor policy, in the works for more than three years, remains incomplete.

In June 2025, the government extended the old framework until March 2026, making it one of the longest continuations after the 2021-22 policy was withdrawn in September 2022 amid allegations of irregularities.

Vinod Giri, director general of Brewers Association of India, said, “The shortened version of the old excise policy was meant to be an interim measure until a proper one was announced. But it has repeatedly been extended, creating uncertainty in the market, which directly affects the business environment.”

Consequently, related decisions and fresh investments in the sector are on hold. As a result, a chunk of Delhi’s alcobev sales is being diverted to the NCR cities like Gurgaon and Noida, which offer more brand options and a more premium buying experience, Giri said, adding that Delhi govt needs to come out with a stable excise policy to ensure the availability of quality products, restore the industry’s confidence, retain business and protect its own revenues.

Govt has said a high-level committee has finalised a draft policy following consultations. It will be formally released once a meeting is held before being taken forward for approval. The new policy is likely to continue with only government-run liquor outlets, but larger and better-stocked ones.

Delhi earned an excise revenue of Rs 7,431 crore in 202324. It grew to Rs 8,255 crore the next financial year. The revenue figures for the previous years were not available.

(With inputs from TOI)