According to industry officials, the Delhi government’s decision to lower the legal drinking age from 25 to 21 years would propel the capital to the top of the alcobev market.
“Reducing the legal drinking age to 21 is both progressive and practical. In any case, underage drinkers were breaking the law in unsupervised areas such as house parties,” said Rahul Singh, the founder of India’s largest beer chain, The Beer Cafe. “The policy change would now allow licence holders to serve alcohol safely in a regulated environment under supervision, reducing the likelihood of young adults drinking excessively,” he added.
On Monday, the Delhi government announced that state-run liquor stores in the national capital will be closed.
“The Delhi government has ensured that citizens are not encouraged to break the law by lowering the drinking age to 21 (the same as UP and other surrounding states). By doing so, Delhi will be able to raise an additional Rs 1,500-2,000 crore for its welfare programmes, according to Amrit Kiran Singh, executive chairman of the Indian Spirits & Wine Association of India (ISWAI), which represents the country’s biggest liquor producers.
“Removing government-run stores also puts an end to the corrupt practise of ‘brand pushing,’ giving Delhi consumers the fundamental freedom to buy any brand they want,” Singh added.
The Delhi government expects a 20 percent increase in annual excise revenue as a result of the reforms, according to Deputy Chief Minister Manish Sisodia. “On the basis of the Group of Ministers’ recommendations, the cabinet approved the new excise policy today.” It was determined that no new liquor stores would be opened in the national capital, and the government would no longer operate any liquor stores. “Currently, the government runs 60% of liquor stores in Delhi,” Sisodia said.
