With many states having opened up the liquor shops, it is estimated that at least almost 50% of the 70,000 liquor vends in India are now open.
Most states are keen to implement the guidelines, industry sources said, with Karnataka, Punjab, Kerala, and West Bengal amongst the most vocal in this regard.
Companies and industry executives estimate the industry may see more than 25% of normal sales, following the new set of guidelines issued recently by the Ministry of Home Affairs (MHA).
With most of the revenue that alcohol brings to states, estimated at Rs 700 crore per day, or Rs 2.5 trillion annually by International Spirits & Wines Association of India (ISWAI), whose members include top liquor players such as Diageo and Pernod Ricard.
Revenue in the Alcoholic Drinks market amounts to US$49,029m in 2020. The market is expected to grow annually by 9.3% (CAGR 2020-2023). The market's largest segment is the segment Spirits with a market volume of US$35,066m in 2020.
The central government had prohibited sale of liquor after the national lockdown was first announced on March 24, resulting in states losing more than Rs 30,000 crore in tax revenues in the past two months.
Both ISWAI and another industry body — the Confederation of Indian Alcoholic Beverages Companies (CIABC) — had asked the government to permit sale of liquor, citing huge revenue loss to players.
Almost 70% of alcohol distribution in India happens through liquor vends or shops, while 30% happens on the premise, that is, in bars, pubs, hotels, and restaurants. The latter continue to remain closed in view of social distancing norms.
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