Top liquor firms oppose Delhi govt's proposed excise policy

India’s top liquor manufacturers have raised strong objections to the Delhi government's proposed new excise policy and warned that it would lead to the monopoly of a few companies, mainly MNCs, and will bring in cartelisation.

In a joint representation to Delhi Chief Minister Arvind Kejriwal, the four Indian companies -- Radico Khaitan Limited, Modi Illva India Pvt Ltd, Alcobrew Distilleries India Pvt Ltd and Jagatjit Industries Ltd – have opposed any change in free pricing criteria.

They also raised red flag over the proposed change in registration of brands, which claimed was “extremely unfair, one-sided and violative of principles of free competition”.

The four major Indian players have said while some of the recommendations of the expert committee are most welcome, a number of key recommendations are “unhealthy and will result in restrictive trade practices, as well as loss to state revenues”.

“Indian-owned beverage alcohol companies will suffer at the hands of a few multi-national companies (MNCs) who operate in Delhi through their domestic subsidiaries,” they warned.

“The proposal suggested by the expert committee is unfair, unreasonable and discriminatory and will lead to an adverse effect on the competition among various liquor companies and benefiting few big corporations (mainly MNCs). Therefore, it is in violation of the provisions of the Competition Act, 2002 and the Consumer Protection Act, 2019," the letter said.