CIABC cautions against high bid prices in Delhi liquor vend allotment

Appreciating the successful allotment of retail vends through bidding, the Confederation of Indian Alcoholic Beverage Companies (CIABC), has cautioned against high prices of alcohol licences in Delhi.

The industry body said that the high auction prices should not pass on to consumers in the form of higher prices, or to manufacturers in the form of demands for undue discounts.

"Whilst we compliment Delhi government for high revenue collection, we also urge it to ensure that such high auction prices are not passed on consumers in form of higher prices, or to manufacturers in form of discounts. Neither of the two will be good for long term health of the industry," CIABC Director General Vinod Giri said in a statement on Sunday.

"We hope that the bidders have made realistic estimates of revenues and expenses and are able to achieve that without undue stress to themselves or to other stakeholders," he added.

In the auction of liquor licences in 20 out of 32 zones in the national capital after the announcement of new liberalised excise policy, the Delhi government has earned a record Rs 5,300 crore, while another Rs 3,000 crore is likely to be earned from the remaining auction of licences.

"There has been visible excitement and sense of anticipation around the tendering for Delhi liquor retail vends. The outcome has opened up Delhi trade to experienced retailers, not only from the city, but also from other parts of the country," Giri said.

It should help bring in new ideas and innovation to uplift the quality of liquor retailing in Delhi, he said, adding that distribution of licenses amongst diverse groups should also weigh in against formation of trade cartels which was and remains one of the major concerns.