Excise duty hike impedes IFB Agro's revenues

IFB Agro Industries has reported that its alcohol business was experiencing difficulties as a result of a substantial increase in liquor prices brought about by a 30 percent increase in the West Bengal government's excise duty.

The liquor business in West Bengal experienced a sharp decline in volume during the year because of a steep 30 percent increase in MRP of IMFL.

According to the company, this abnormal increase in the prices of India Made Foreign Liquor in West Bengal was made effective from January 2023 by the West Bengal Excise Department. This in turn led to a sharp decrease in its demand in the state.

IFB Agro Industries informed that it had made a representation to the West Bengal’s excise department and has sought Chief Minister Mamata Banerjee's intervention to reconsider the decision.

The company’s revenues from spirits, and other related items plummeted to Rs. 932 crore during 2022–2023 from Rs. 1,813 crore.