Uttar Pradesh highest consumer of liquor in India, West Bengal second in list: Study

People of Uttar Pradesh consume the most liquor across India followed by West Bengal, a study has confirmed. 

This information has come to the fore in a joint study by the Economic Research Agency ICRIER and the law firm PLR Chambers.

According to the study, there are about 1.4 crore people in West Bengal who consume alcohol. It is one of the 3 major revenue earning categories of the state. It said that the price model in the state has been changed recently to ex-distillery price (EDP) from free market. There has been an increase in taxes on liquor, which is a major concern for the industry. 

At the same time, due to the steep increase in retail prices, there has been a decline in the sale of Indian Made Foreign Liquor (IMFL) in the state.

The report said that although the method of calculation is lower EDP, the excise duty has been increased. The issue needs to be reviewed in terms of consumer feedback on price changes. 

India is the world's fastest-growing market for alcoholic beverages. The size of this market in 2020 was $52.5 billion. The liquor market is projected to grow by 6.8 percent annually from 2020 to 2023. 

The production of liquor in the country has increased by about 23.8 percent during 2015-16 to 2018-19. This sector has given employment to about 15 lakh people and the sales turnover of this sector in 2019 was $48.8 billion.