UP government okays liquor vending in shopping malls

LUCKNOW/NOIDA: Shopping malls and multiplexes in Uttar Pradesh will have another feature in days to come. Desperate to generate revenue during the pandemic-hit fiscal year, Uttar Pradesh government on Saturday decided to allow liquor vending within the shopping malls. Officials said that Indian made foreign liquor (hard liquor whisky, vodka, gin and rum brands), as well as beer and wine bottles, can be sold through retail vends within shopping malls now on.
The order comes with a rider that only hard liquor brand worth more than Rs 700 and beer cans worth Rs 160 can be sold through such shops.Annual license fees of Rs 12 lakh would have to be paid to the department by the individual, firm, company or society interested in opening up such stores. Consumption on-premises will not be allowed in establishments which do not possess a bar or restaurant license.
The order has evoked strong reaction from the liquor traders in the state who felt that during the period when economic activity already remains subdued, the latest decision of the state government would further crush the business prospects of normal retail vendors. "As it is we are battling weekend lockdown. If public will be allowed to go and buy liquor and beer from malls, business of traditional retailers will come down substantially," said SP Singh, president of an association formed by liquor traders in UP.
Tipplers, however, welcomed the decisions. "Traditional liquor vendors have been fleecing customers and have been overcharging customers. I personally feel retail vends in malls will provide authentic stock and that too on MRP," said Ashish Todaria, resident of C block, Indiranagar in Lucknow.
Meanwhile, the liquor business continued to cheer up Noida based entrepreneurs even during the pandemic-hit months. Closing down the settlement process covering retail liquor shops for the current fiscal year, the Gautam Budh Nagar district excise department has managed to issue a higher number of licenses to liquor vendors this year despite subdued business sentiments.
On Friday, the excise department finalised the list of liquor shops that would come up in days to come across the district. This time 525 licenses have been issued to those interested in carrying out liquor business. During 2019-20 fiscal year, 481 shops were operational in the city.
Though the license fees and other terms and conditions remain unchanged, this time 9% more entrepreneurs came forward to take a plunge in the trade of beer, country-made and foreign liquor. License for bars and restaurants are issued centrally by the excise department headquarters in Prayagraj. The response has cheered up the department struggling to rebound from the slowdown during the first quarter (April – May – June) of the 2020-21 fiscal year.
“But at the present sale of beer and English wine is extremely poor. Initially during unlock I and II, we got good response. 70% premium levied by the Delhi government was also helping us boost sales at that time. But the settlement process of retail license has been encouraging. A lot of new players have taken a plunge in the liquor business undeterred by the pandemic,” said district excise officer RB Singh.
Explaining the reason for an increased number of liquor vends this year, officials said that due to increasing urbanisation, new colonies have been established in the city and to cater to the local population new shops have been allowed to come up in such areas. 7X sectors in Noida and residential blocks in Greater Noida West are two pockets where mushrooming of new shops is expected to take place.
In another encouraging sign, it has been observed that 134 new businessmen and entrepreneurs have entered the liquor business this time. Singh said that among the 525 shops, 391 licenses given last time have been renewed while the remaining 134 have been given to fresh applicants through e-lottery.
The excise department gives preference to the old licensees if the retailer agrees to pick up 15% to 20% more stock than the previous year (varies for beer, English wine and country-made liquor) apart from fulfilling other terms and conditions.
Out of its target of Rs 1,037 crore for the previous fiscal year, the department was able to garner Rs 886 crore. The target for this year is yet to be fixed but the settlement of retail license has yielded a substantial amount of revenues for the department nonetheless.
Status of liquor shops in Gautam Budh Nagar:
FY 2019-20 / FY 2020-21
Foreign liquor shops – 115 / 137
Beer shops – 129 / 131
Model shops – 23 / 26
Country made liquor shops – 214 / 231
Total - 481 / 525