Punjab limits IMFL purchase for liquor retailers

A recent circular by the Punjab government has limited liquor retailers operating in Punjab to purchasing only 1,000 cases of Indian Made Foreign Liquor (IMFL) per month, according to a newspaper report. For buying additional stock of IMFL, retailers need to apply for a permit and submit utilisation report for the initial 1,000 IMFL cases. The move has ignited concerns among liquor manufacturers doing business in Punjab, particularly those whose businesses are fostered by whisky sales.

The sentiment is brewing among the industry players that this strict quota could pave the way for an increase in black marketing of alcoholic beverages in the border state Moreover, as per protocol, new labels need to be approved each year for liquor brands operating in Punjab. This entails that liquor brands operating in Punjab are now required to go through the process of procuring new licences for liquor which may be challenging to sell.