Government unable to tame liquor retailers

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HYDERABAD: A row that has erupted between the excise department and the liquor dealers over sale of liquor at more than the maxim..

HYDERABAD: A row that has erupted between the excise department and the liquor dealers over sale of liquor at more than the maximum retail price (MRP) printed on liquor bottles continues to rage.
Officials say they are only striving to enforce the law of the land to ensure that wine dealers do not fleece consumers by forcing them to pay more than the prescribed price. But liquor dealers allege that it is part of an exercise to increase the revenue for the department.Compared to 200810 when the growth of liquor sales was around 25 to 30 per cent, the liquor sales in terms of cases have not increased considerably in the past two years. Liquor shop owners say that the increase in liquor sales in terms of cases or quantity is less than 5 per cent. Yet, the excise revenue for the state government has increased by about 10 per cent. As against last year's revenue collection of Rs 13,904 crore, the excise department has already netted about Rs 9,000 crore by the end of October.

"Normally, the target for excise revenue is set 20 per cent higher than the previous year. After increasing the MRP on liquor and hiking the tax, we expected the revenue collections to go up by 30 per cent. But that did not happen as the liquor sales in terms of cases have remained almost static," said a senior official. At a recent meeting, officials felt that selling liquor at more than MRP was one of the reasons for the static sales. It was suggested that though the government took a lenient view of the excess pricing, it was time to initiate stern action as lesser price means increase in sales.

"We shell out crores of rupees to obtain liquor licences. In addition, we have to 'manage' officials of different departments, local politicians and many others apart from meeting other expenses. How can we make profit and save some money to bid at the next auction of licences unless we sell liquor at higher prices?" questions a liquor dealer from Nalgonda on condition of anonymity. He said he spends about 50 per cent of his profits on 'managing' people placed in high positions.

But excise officials say liquor shop owners cannot hold the government to ransom and assert that the the drive against excess pricing will continue until liquor is sold at MRP.