AgenciesConfusion and chaos prevailed in Delhi, one of the country’s top five markets for alcoholic beverages, amid government flip flop over excise policy that was extended for a month on Monday.
“Though an extension has been granted, there is still a lot of uncertainty about what happens after a month,” said Priyank Sukhija, chief executive of First Fiddle, which runs Lord of the Drinks and Diablo. “We had invested in outdoor areas and the new excise policy allowed us to serve liquor in outdoor areas. We still don't know if the old excise policy is to be continued for bars as well or only for retail vends."
Executives said they are caught in the political tangle between the centre and the state. The government had unveiled a new excise policy last November, but that was withdrawn last week by the Delhi government, following enquiries by the CBI and Economic Offences Wing of Delhi Police.
According to the Delhi government’s excise policy, only government-run liquor shops could operate from Monday, August 1, leading to 468 private liquor shops having to shut down.
“Normalisation of trade with a clear and consistent policy perimeter is essential for supply chains to work efficiently. Startstop-start mode or very short-term extensions like a month disrupt the supply chain, creating stock pile-ups or stock outs that take time to regain shape and flow,” said Confederation of Indian Alcoholic Beverage Companies (CIABC) director general Vinod Giri.
The flip-flop comes on the eve of the festive months, when dining out peaks.
Tarun Thakral, chief executive of Delhi's Le Meridien hotel said the property has liquor stocks for the next 15 days but there is uncertainty concerning the future developments. "I hope they learn from their mistakes and there won't be any hiccups or confusion after one month."
“Though an extension has been granted, there is still a lot of uncertainty about what happens after a month,” said Priyank Sukhija, chief executive of First Fiddle, which runs Lord of the Drinks and Diablo. “We had invested in outdoor areas and the new excise policy allowed us to serve liquor in outdoor areas. We still don't know if the old excise policy is to be continued for bars as well or only for retail vends."
Executives said they are caught in the political tangle between the centre and the state. The government had unveiled a new excise policy last November, but that was withdrawn last week by the Delhi government, following enquiries by the CBI and Economic Offences Wing of Delhi Police.
According to the Delhi government’s excise policy, only government-run liquor shops could operate from Monday, August 1, leading to 468 private liquor shops having to shut down.
“Normalisation of trade with a clear and consistent policy perimeter is essential for supply chains to work efficiently. Startstop-start mode or very short-term extensions like a month disrupt the supply chain, creating stock pile-ups or stock outs that take time to regain shape and flow,” said Confederation of Indian Alcoholic Beverage Companies (CIABC) director general Vinod Giri.
The flip-flop comes on the eve of the festive months, when dining out peaks.
Tarun Thakral, chief executive of Delhi's Le Meridien hotel said the property has liquor stocks for the next 15 days but there is uncertainty concerning the future developments. "I hope they learn from their mistakes and there won't be any hiccups or confusion after one month."
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