Pubs face crunch as supply low over excise disruptions

The festive season has begun on a rather dry note for diners in the national capital. Restaurants and bars across the city have mostly run out of liquor and alcoholic beverages, especially of premium brands, as the tumult from Delhi's controversial excise policy continued for another year, with the shortage likely to continue this weekend.

- Alok KN Mishra

At the heart of the problem is that the excise policy of 2020-21 was scheduled to expire on September 30. While the government issued a notification allowing licensees to apply for a sixmonth extension after paying a fee, some categories - like that of wholesalers-were of those that need to be obtained afresh, a process that requires reams of documentation and on average, if everything is in order, a week's time. To make matters worse, the notification came a day before the policy lapsed - on September 29 which was followed by a long weekend.

This meant that many restaurants, bars and pubs, who otherwise managed to extend their existing license, soon ran out of stocks especially of premium brands that they usually store in lower quantities - since most wholesale traders were yet to resume supplies in full volumes.

Manpreet Singh, a restaurateur and treasurer of the National Restaurants Association of India (NRAI), said the wholesalers the restaurants were contacting for supply have mostly told them dispatches will take 3-4 days more. "Even on Friday (October 13), suppliers of several brands said they would be able to resume the liquor supply in 3-4 days," he said.

"The excise policy was earlier extended for three months and now the government has extended the policy for six months. It has resulted into policy stability and supply disruptions," said Singh.

Three wholesalers HT spoke to said applications for wholesale licenses began from October 3, the first working day after a long weekend. "Initially there was a rush, which caused delays. Acquiring licences documentations which also takes time. After renewal of licences, import permits need to be generated. Now almost all wholesalers have done their formalities and supplies are expected to resume at full scale soon," said one trader, who asked not to be identified.