In Mumbai city, IMFL and beer sales have declined to end at 120.49 lakh BL and 209.48 lakh BL respectively against 120.71 lakh BL and 216.37 in the previous year
Beer sales in Maharashtra have fallen in the 2016-17 financial year with consumption of Indian Made Foreign Liquor (IMFL) and country liquor (CL) showing a rise.
The sale of wine, which is an aspirational drink, has shown the highest growth in percentage, though the volumes are low compared to other spirits.
In 2016-17, beer sales in Maharashtra fell by 0.95 per cent to end at 3,285.78 lakh bulk litres (BL) against 3,317.32 lakh BL in the previous fiscal. However, IMFL sales increased by 2.99 per cent at 1,930.53 lakh BL compared to 1,874.51 lakh BL in 2015-16 and CL, which is cheap and consumed by the working class, rose by 2.41 per cent to 3,254.51 lakh BL against 3,177.83 lakh BL. The sales of wine rose from 61.57 lakh BL to 64.70 lakh BL, a growth of 5.09%.
In Mumbai city, IMFL and beer sales have declined to end at 120.49 lakh BL and 209.48 lakh BL respectively against 120.71 lakh BL and 216.37 in the previous year, a fall of 0.18 per cent and 3.18 per cent
However, CL sales have risen marginally by 0.67 per cent to end at 98.94 lakh BL versus 98.28 lakh BL while wine consumption has increased from 6.52 lakh BL to 6.55 lakh BL (0.43 per cent).
The situation in Mumbai's suburbs is slightly better with consumption of CL, IMFL and beer rising by 4.61 per cent, 3.14 per cent and 1.01 per cent to end at 243.88 lakh BL, 264.90 lakh BL and 564.27 lakh BL as on March 31, 2017, compared to 233.14 lakh BL, 256.83 lakh BL and and 558.64 lakh BL in the corresponding period in the previous year. Wine sales have increased by 1.67 per cent to 15.49 lakh BL from 15.24 lakh BL.
"Liquor prices are high due to the state's taxation regime and hence tipplers prefer hard liquor for a faster and cheaper kick. Every few years, youth who consume beer reach adulthood and shift to stronger spirits," explained a senior officer from the state excise department, attributing the fall in demand in the last two months of 2016 to demonetization. He noted that the Supreme Court (SC) ban on the sale of liquor in shops, restaurants, three-star, four-star, or five-star hotels located 500 meters from national and state highways from April 1 would impact the liquor sector further.
"Mumbai city is witnessing a tepid growth or de-growth in spirit sales because of the gradual shift in economic activity to the suburbs," the official said. He added that better enforcement and a crackdown on illicit hooch had led to a growth in CL sales.
...& ANALYSIS
- Maharashtra follows a policy of discouraging liquor consumption through high prices and low sales.
- Goa and Daman's comparatively liberal policies encourage smuggling of the brew to Maharashtra
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