Tipplers in city are an agitated lot. Instead of a high, the steep rise in liquor prices due to higher excise duty may to leave them feeling low. Liquor sales, which have been normal so far, may eventually take a hit, say vendors. The effect of central and state governments increasing duties on liquor is being seen from April 15. The state hiked the excise duty on liquor to 300% from 200%. This is has resulted in all brands seeing a significant jump in retail prices.
The biggest dent is apprehended in the entry level brands of rum and whisky, considered to be common man`s hard drink. Regular customers may find these brands too dear. Rums like Old Monk and Red Rum, and whisky like McDowell`s or Officers Choice form a major part of the sales at the liquor counters. The trade fears a major hit in sales if the consumers preferring such brands go away.
"Almost 30,000 cases of basic brands are sold each month in the city. Brands like Old Monk or Officer`s Choice are the middle class` liquors. Given the purchasing capacity of this segment it is feared that the new prices may become unaffordable for many," said Prakash Hemrajani of Grand Bar who also runs a wholesale liquor business.
A quarter bottle of such brands which was earlier priced at Rs 63-65 now costs Rs 99, a hike of over 50%. Similarly, price of certain brands of Vodka considered, slightly superior, has gone up to Rs 125 from Rs 80 for a quarter bottle, he added.
The basic brands are followed by the deluxe segment that sells around 12,000 cases a month. The price hike is expected to have an impact on its sales too. For the rich, who prefer scotch or premium Indian brands, it may not make much difference. Hardly 250 cases of the premium brands are sold in Nagpur each month, said Hemrajani. Beer sales may also remain stable as it has seen lower rise in taxes, say traders.
Rameshbhai of Liberty Bar at Sadar said though the sales have been normal so far, the impact would be seen in a week or so when the consumer begin reacting to the new price regime. "Once you enter a bar you end up buying something, even if the prices have gone up. But you would think twice before going next time," said the manager at Lahoree Deluxe bar in Dharampeth.
Some liquor shop-owners said they had already started feeling the pinch. Ram Sharma of Ankur Wines also at Dharampeth said his sales had come down almost 30%. Hemrajani too confirmed a similar dip in wholesale business.
The new printed rates of some premium brands as well as regular Vodka are yet to be announced which provides a temporary relief, added vendor. "The market would adjust to the situation, as there is a likelihood of an entirely new range of basic level brands being launched, priced at Rs 80 a quarter bottle. This is affordable enough for middle class consumers. A couple of such brands like Old Tavern and Haywards Wine have already been already registered," said a leading wholesaler from the city.
Regulars, however, complain that it may lead to many to turn to country liquor. "Occasional drinkers may ride it out but there is a large section of regular consumers. Many of them may turn to cheaper country liquor," said lawyer Srikant Maroskar. It may also encourage spurious liquor business, added Mangal Singh, a resident of Sadar.
The biggest dent is apprehended in the entry level brands of rum and whisky, considered to be common man`s hard drink. Regular customers may find these brands too dear. Rums like Old Monk and Red Rum, and whisky like McDowell`s or Officers Choice form a major part of the sales at the liquor counters. The trade fears a major hit in sales if the consumers preferring such brands go away.
"Almost 30,000 cases of basic brands are sold each month in the city. Brands like Old Monk or Officer`s Choice are the middle class` liquors. Given the purchasing capacity of this segment it is feared that the new prices may become unaffordable for many," said Prakash Hemrajani of Grand Bar who also runs a wholesale liquor business.
A quarter bottle of such brands which was earlier priced at Rs 63-65 now costs Rs 99, a hike of over 50%. Similarly, price of certain brands of Vodka considered, slightly superior, has gone up to Rs 125 from Rs 80 for a quarter bottle, he added.
The basic brands are followed by the deluxe segment that sells around 12,000 cases a month. The price hike is expected to have an impact on its sales too. For the rich, who prefer scotch or premium Indian brands, it may not make much difference. Hardly 250 cases of the premium brands are sold in Nagpur each month, said Hemrajani. Beer sales may also remain stable as it has seen lower rise in taxes, say traders.
Rameshbhai of Liberty Bar at Sadar said though the sales have been normal so far, the impact would be seen in a week or so when the consumer begin reacting to the new price regime. "Once you enter a bar you end up buying something, even if the prices have gone up. But you would think twice before going next time," said the manager at Lahoree Deluxe bar in Dharampeth.
Some liquor shop-owners said they had already started feeling the pinch. Ram Sharma of Ankur Wines also at Dharampeth said his sales had come down almost 30%. Hemrajani too confirmed a similar dip in wholesale business.
The new printed rates of some premium brands as well as regular Vodka are yet to be announced which provides a temporary relief, added vendor. "The market would adjust to the situation, as there is a likelihood of an entirely new range of basic level brands being launched, priced at Rs 80 a quarter bottle. This is affordable enough for middle class consumers. A couple of such brands like Old Tavern and Haywards Wine have already been already registered," said a leading wholesaler from the city.
Regulars, however, complain that it may lead to many to turn to country liquor. "Occasional drinkers may ride it out but there is a large section of regular consumers. Many of them may turn to cheaper country liquor," said lawyer Srikant Maroskar. It may also encourage spurious liquor business, added Mangal Singh, a resident of Sadar.
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